Estimating the tax base in the value added tax system (case Iran 1995-1999)

Expansion of government commitments in economic and social realms and efforts aimed at achiering objectives such as economic growth, price stability, rise in employment and equitable income distribution have faced the expenditures of governments with an asceding trend. Funding such expenditures requires sources of revenue. Among government revenues, the tax revenue plays a major role. The value added tax system, as one of the methods for tax calcution and taxcollection, can transparently calcutate the tax base and facilitable tax collection, and also in many cases it can lead to increased tax revenues. In the present research , using the inpout –output table, the tax base has been estimated for the period 1995-1999 by the use of this method. The reslts obtained from estimation of the base of the value added tax with regard to the tax code , indicate that during the second develoment plan, on average about 54 percent of gross domestic product (GDP) has been annually envisaged as the tas base.