The Effect of tax composition On the share of net capital stock Industry sector with ARDL approach

Importance of forming and the amount of capital stock in the industrial sector due to higher added value than other economic sectors in the growth and economic development, especially in the economic rise of paramount importance.On the other hand, taxes due to stabilization roles, allocation and distribution of income in the economy as one of the variables affecting the process are the investment and capital formation in the economy.This study seeks to answer the question of what combination of taxes among different types of taxes can help increase net capital stock in the industrial sector. This paper, using the ARDL model and the annual data of the Iranian economy during 1976-2016, The effect of tax composition (income tax, corporations, wealth, goods and services and imports) using the income-neutral method has been assessed on the percentage of net capital stock of the industrial sector to total capital stock. corporations instead of income tax reduces the share of net capital of the industrial sector and the substitution of variable tax on wealth, goods and services and imports instead of income tax increases the share of capital stock. It becomes a purely industrial sector.Also, the substitution of wealth and import tax variable instead of corporate tax variable would increase the share of net capital of the industrial sector and the substitution of variable tax on goods and services instead of the corporation tax variable would reduce the share of net capital of the industrial sector. .Replacing the variable tax on goods and services and imports instead of the tax on wealth has reduced the share of industry's net capital stock, and replacing the import tax variable with variable tax on goods and services has increased the net capital stock of the industrial sector relative to net capital stock. It will be whole.