THE IMPACT OF TAXATION AS AN AID TO ECONOMIC DEVELOPMENT (APPLIED STUDY IN KURDISTAN REGIONAL GOVERNMENT)

Amanj Mohamed Ahmed,Muhammad Nawzad Ali

doi:10.29358/sceco.v0i31.453

Abstract

This research was carried out to determine the weight of taxation in economic development, the main purpose is to discover the level of impact of taxation on economic development or if it has any impact. Another key objective is to improve the level of understandability and find probable solutions toward issues in taxation within the Kurdistan region, as well as unveiling the Kurdistan Regional Government’s taxation system in compliance with the up to date old Iraqi tax laws. KRG is barely surviving this crisis, with the increase of unemployment and poverty could taxation work as an aid to support the piles of the region. The current corruption in the government that does not use tax money efficiently and lack of transparency has been evaluated. Primary and secondary research methods were used to be able to gather information in order to reach an understanding. The primary source of data includes personal interviews and questionnaires, meanwhile, the secondary source of data includes the use of textbooks, social media, internet, and newspapers. Non-probability method of sampling was used in selecting the respondents. The study used the standard deviation, chi-square formula, and tables for the method of the examination. The results clearly illustrates that the government should commence the critical pursuit of broadening regional economy in order to improve economic growth and expansion and to become meticulous to fight with real corruption. The limitation and resources should be expanded by the government and bring taxation back to life through educational systems and social awareness.

Highlights

Background of the Study ‘‘Tax is a payment which the government forces the individuals, corporations, and fiduciary to pay unrelated to the goods value and provided services
For the purpose of this study, the researcher would be concerned with the impact of taxation as an aid to the economic development of the Kurdistan regional government
In Kurdistan regional government, it is easy for the taxpayers to avoid tax because of the current economic crises that are facing the region

Summary

Introduction

Background of the Study ‘‘Tax is a payment which the government forces the individuals, corporations, and fiduciary to pay unrelated to the goods value and provided services. The most important functions of any government especially developing countries such as KRG is the provision of public and self-raised services such as electricity, water, hospital, schools, roads as well as rising the individual income of everyone within the borders, poverty alleviation to mention a few (Aikins, 2011 and Armstrong et al, 2015) For their services to be adequately provided, the government should have enough revenue to finance them. Depending on the scarce resources of the government, there is an urgent demand to lift the citizens along because the imposition of tax on all taxable individuals and companies to strengthen government financial position (Aikins, 2011 and Aldy and Stavins, 2012) To this end, the government has always enacted various tax laws and reformed existing ones to stand the taste of time. Taxation allows avoidance but tax evasion will be counted as a crime and the victim will be charged with a penalty or imprisonment (Aikins, 2011)

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Conclusion