Document Type : Original Article


University Professor, Faculty of Economics and Management, Shahid Bahonar University of Kerman, Kerman, Iran



One of the main and essential issues in the developing countries is vast financial resources. Having vast financial resources with an efficient management in the economy ultimately leads to the development of the economy. Therefore, most companies are looking for certain activities which result in directing investment flow. In this regard, one of the most significant factors which plays an effective role in investment attractiveness is Tax policy although economists do not agree with this idea. Whereas some of them pay specific attention to tax incomes from firms, others believe in obtaining career and capital tax. Likewise, many people believe that applying taxes is against the principles of business and it could disturb the relations of the market. Many countries have gained good experiences in the field of achieving economic growth through particular financial policies. In this article an analytical-descriptive research method has been used to propose ways to contribute to developing the economy of the country. Additionally, the backgrounds of the relevant research studies, role of the tax and its effect on the economy will be studied and tax scenario of India which is essential for economic development of this country will be evaluated.


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