The Efficiency of the Taxation System for the Provinces of Iran by Separation of Tax Bases: DEA Approach

The purpose of this research is to investigate the efficiency of provincial tax affairs offices and their effect on tax revenues. To do this, depending on the type of variables used, DEA and BCC model, and the non-Controllable variables model (NCN) output-axis-return to variable scale (VRS) were used in the years 2010 and 2013. The research results show that only 7 tax administrations include tax offices in provinces Tehran, Boosher, Hormozgan, Sistan va Baloochestan, Markazi, Kerman and Khoozestan were efficient in these two years. This has made about 20% of tax revenue is not received due to inefficiency. The results also indicate that, although in the first three years of the fifth development plan, the value added of various sectors of the economy has increased nicely, but tax revenue growth has failed to move with these sectors. Therefore, if an appropriate mechanism for modeling the offices identified in this study as a reference can be created, it can also increase the efficiency of these departments at the level of the reference agencies, achievement of tax revenues and lower budget expenditures. Moreover, it is necessary to apply policies to increase the value added of various economic sectors as policies outside the control of the tax organization.