The Survey of Taxation's Effects on P.P.I towards SAM Framework

Tax and Taxation play a critical role in economics and has two distinct functions:(1) It is an income source for government; and (2) It is a lever to acquire social justice in societies. The purpose of this paper is to analyze the quantitative effects of taxation on Production Price Index (PPI) and economic sectors relative Advantage. For this purpose, Social Accounting Matrix (SAM) and Structural Path Analysis (SPA) are practically used. We have applied two distinct approaches in this paper: Multiplier Model that help us to get general results; and SPA and Multiplier Decomposition that explain general results in details.To put these approach in action IRI (1375) SAM is used. Results show that, in one hand, production price index in related agriculture and services sector affect the taxation increasingly, and in other hand, an increasing in service and agriculture sectors impact the price index in other economic sectors.