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
Date Written: May 9, 2020
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: Suggested Citation