Payame Noor University Economic Growth and Development Research 2228-5954 9 36 2019 09 23 Investigating the Impact of Value Added Tax (VAT) on Iran's Economic Growth Using the Computable General Equilibrium Model (CGE) Investigating the Impact of Value Added Tax (VAT) on Iran's Economic Growth Using the Computable General Equilibrium Model (CGE) 109 128 5752 10.30473/egdr.2019.5752 FA Ahmad Chehreghani Ph.D. of Economics, Shahid Chamran University, Ahvaz, Iran Mansour ZaraNejhad Professor, Faculty of Economics and Social Sciences, Shahid Chamran University, Ahvaz, Iran Journal Article 2018 12 24 The purpose of this paper is to investigate the impact of Value Added Tax (VAT) on Iran's economic growth. For this purpose, Computable General Equilibrium Model (CGE) has been used. Data are derived from the Social Accounting Matrix (SAM) of Iran in 2011, prepared by the Parliament Research Center in 2015, which is the latest SAM of Iran. Policy analysis has been carried out in the form of nine scenarios: the VAT with the rates applied in Iran (3%, 4%, 5%, 6%, 8% and 9%), and the applicable rates (10%, 15% and 20%). In all scenarios, the VAT rate in agriculture sectore is considered zero. The results indicate that VAT has positive impact on Iran's economic growth. The purpose of this paper is to investigate the impact of Value Added Tax (VAT) on Iran's economic growth. For this purpose, Computable General Equilibrium Model (CGE) has been used. Data are derived from the Social Accounting Matrix (SAM) of Iran in 2011, prepared by the Parliament Research Center in 2015, which is the latest SAM of Iran. Policy analysis has been carried out in the form of nine scenarios: the VAT with the rates applied in Iran (3%, 4%, 5%, 6%, 8% and 9%), and the applicable rates (10%, 15% and 20%). In all scenarios, the VAT rate in agriculture sectore is considered zero. The results indicate that VAT has positive impact on Iran's economic growth. https://egdr.journals.pnu.ac.ir/article_5752_2d1c09455b243c1b42c1e732ffc2f0eb.pdf