Impact of Tax Laws and System on Afghanistan Economy

American International Journal of Business Management (AIJBM), ISSN- 2379-106X, Volume 3, Issue 5, PP 52-61, May 2020

10 Pages Posted: 5 Jun 2020

See all articles by Arash Sahebe

Arash Sahebe

Limkokwing University of Creative Technology

Date Written: May 9, 2020

Abstract

Background: Revenue Generation is a very critical aspect of the economic fortunes of any nation. For any country to experience a strong and viable economy, its revenue base must be efficient. And a very important aspect of the revenue base of any nation is its tax system. Hence, the main of this study was to assess the impact of taxes on the economic growth of Afghanistan.

Materials & Method: The study employed quarterly data from 2006-2017. The data employed were sourced from the World Development Indicators (WDI) 2019. The Generalized Method of Moments (GMM) and Johansen's Cointegration were used to estimate the Models.

Major Findings: It was found that Income taxes, External Debt, and Credit to the private sector significantly impacted economic growth in the study area.

Conclusion: The study concludes that for the economic recovery of the country especially after a series of civil unrest, the tax system is very critical.

Keywords: Tax Revenue, Tax, Tax System, Economic Growth

JEL Classification: G15, G18, H2, H25, H27, H3

Suggested Citation

Sahebe, Arash, Impact of Tax Laws and System on Afghanistan Economy (May 9, 2020). American International Journal of Business Management (AIJBM), ISSN- 2379-106X, Volume 3, Issue 5, PP 52-61, May 2020 , Available at SSRN: https://ssrn.com/abstract=3597038

Arash Sahebe (Contact Author)

Limkokwing University of Creative Technology ( email )

Malaysia

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