Abstract
In this research, it was aimed to investigate and analyze the effect of replacement of
value added tax (VAT) with income tax as to product companies in Golestan province.
To do so, the data of the absolute income tax of some 67 companies were gathered from
their tax records. Then the value added tax of each company was estimated, applying the
additive method and using the rates of four scenarios; 1.5, 3, 7 and 10 percents.
The analysis of the data indicates that the research data wasn't normal, therefore
Wilcoxon's nonparametric tests and Friedman's tests were used to examine the
research assumptions.
The research results show that the replacement of value added tax at lower rates of
1.5 and 3 percents with income tax as to the product companies will cause a
reduction in tax revenues of the province.
While the replacement of the value added tax at rates of 7 and 10 percents for the
income tax in the companies will lead to an increase in tax revenues of the province.
Keywords
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