Economic and Social Impacts of Sales Tax Imposition

A Field Study of the Opinions of a Sample of Academics, Specialists, and Workers in Hotels and Restaurants in the City of Sulaymaniyah

Abstract

The research aims to explore the economic and social impacts of sales tax on society. To achieve the research objectives, a descriptive-analytical approach was used, relying on a set of questions directed to a sample of academics and specialists in accounting and taxation, in addition to a group of workers in hotels and restaurants in the city of Sulaymaniyah. A total of 80 questionnaires were distributed to different categories of the research sample, and 70 questionnaires were received and analyzed, which is 87.5%. Interviews were also conducted with a group of workers in hotels and restaurants in Sulaymaniyah. The research findings revealed that sales tax contributes to government funding and economic stability, but it negatively affects individuals' purchasing power and increases business costs. On the positive side, it allows for easy tax collection and can be used to fund public services and stimulate economic growth. The research provided several recommendations, the most important of which include the need to direct taxes fairly to reduce their negative effects on vulnerable groups. The design of the tax should be done carefully to ensure justice and achieve a balance between the interests of individuals and businesses. It is also recommended to issue a specific sales tax law and raise awareness among hotel and restaurant owners and citizens. Furthermore, tax revenues should be directed to public and service projects to enhance citizens' willingness to pay the tax.