comparative analysis of distributive effects of income tax in islam and income tax system in iran

the role of taxes in reduction of economic, inequalities, has been a controversial subject in recent decades. destructive effects of progressive taxes on efficiency and problems of tax compliance, have been considered in tax reform programs worldwide. introduction of an islamic income tax system; with all its progressive features, and its popularity seems to be effective in correcting the distributive outcomes of existing income tax system. we have compared the distributive effects of two systems, in this article, and appraised the khoms, as a major income tax in lsalm, to replace the corresponding income taxes. distributive effects of two systems, were estimated by current tax incidence approach under four tax shifting assumptions. suits index of progressivity, indicates that the proposed replacement in general, improves income distribution: our estimations indicate that tax burden of khoms is lower than that of similar taxes. in sum, the khoms system, improves the index of vertical equity, leading to a lesser degree o] distortion in economic efficiency