The analysis of the taxation on Bank deposits interest, on Iran’s macroeconomic selected variables in format DSGE model

The taxation on bank deposits interest is an issue that has attracted the attention of economic policy makers in the tax domain. One of the important factors in taxer is the existence of appropriate tax bases, one of the good features of the tax base is its accessibility. In this paper, with using a dynamic stochastic general equilibrium model, the possibility of tax on interest deposits and its impact on macroeconomic variables are analyzed with seasonal data from 1991 to 2021. With the imposition of 10% tax rate on bank deposits interest, has decreased of production variables by 0.5%, capital stock by 1.12%, investment by 2.57%, other taxes 0.45% government expenditures by 1.22 %, volume of money by 1.41% and respectively, in addition it has increased loans by 0.27%, deposits by 0.85%consumption by 0.47% , inflation rate by 0.98%,. The result of the research shows that the application of this type of tax depends on the level of development of the financial system, the size of the government and the economic stability of the country. Therefore, due to the decrease in production when tax on deposit interest is applied, a suitable platform should be provided for the imposition of this tax in Iran.