INVESTIGATING THE FACTORS AFFECTING THE INCOME DISTRIBUTION ON THE AFGHAN ECONOMY WITH EMPHASIS ON TAXES

Behrouz Sadeghi Amroabadi, Seyed Amin Mansouri and Mohammad Ali Ahmadi

Journal of Academic Research in Economics, 2024, vol. 16, issue 2 (July), 312-332

Abstract: One of the most important tools for adjusting the income distribution is tax. By imposing taxes on the income and wealth of individuals, governments can, in addition to financing their own expenses, use this tool to reduce the income gap and make the necessary adjustments in the distribution of income. The purpose of this study is to investigate the factors affecting the income distribution by emphasizing the types of taxes in the Afghan economy. In this research, data collected by library and statistical methods, WDI 2021 and Global Inequality Database during 1971 to 2020, and for data analysis, OLS and GMM time series econometric models use in this research. The results of different research models show that the tax on the consumption of a tax is on the path of injustice and inequality, because it receives a tax in equal proportions from all members of society. The most important proposal in this regard is to create an exponential tax mechanism. The research also shows that trade taxes will increase the price of domestic consumer goods, resulting in inflation and increased income inequality. The results also show that increasing profit tax will reduce corporate profits and, of course, reduce income inequality.

Keywords: Income Distribution; Inequality; Afghanistan Economy; Consumption Tax; Profit Tax; Trade Tax. (search for similar items in EconPapers)
JEL-codes: D63 F38 H23 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:shc:jaresh:v:16:y:2024:i:2:p:312-332

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