Comparative Study of Tax Laws Based on the Theories of Adam Smith and Seyyed Jamaluddin Asadabadi

Abstract

This article conducts a comparative study of Iran's tax laws based on the theories of Adam Smith and Seyyed Jamaluddin Asadabadi. Adam Smith, as the founder of modern economics, proposed principles such as justice, certainty, proportionality, and economic efficiency in taxation, which are still used in modern tax system designs. Conversely, Seyyed Jamaluddin Asadabadi, with an emphasis on social justice and equitable wealth distribution, offered unique perspectives on taxation. This article examines the history and evolution of tax laws in Iran and compares them with the theoretical principles of Smith and Asadabadi to analyze the strengths and weaknesses of Iran's tax system. The findings indicate that while principles of justice and transparency have been largely implemented in Iran's tax system, complexity, excessive bureaucracy, and pressure on lower-income groups remain major weaknesses. Finally, the article provides recommendations for improving Iran's tax laws based on the theories of Adam Smith and Seyyed Jamaluddin Asadabadi. These recommendations include simplifying tax laws, strengthening oversight and enforcement, adjusting taxes based on payment ability, increasing transparency, and leveraging international experiences.