Executive Challenges of Good Governance in Iran’s Taxation System

Abstract

Certain concepts, such as Good Governance, are recognized through their elements and components. Good governance emerged as a theoretical response to the inefficiencies of previous development mechanisms. On the other hand, taxation—being the most important source of government revenue—is influenced by this very concept. Naturally, the mechanisms of the taxation system, especially the Iranian National Tax Administration, must align with the principles and components of good governance, such as the rule of law, transparency, accountability, and others. However, the Iranian taxation system faces several executive challenges, including the establishment and operation of a comprehensive taxpayer financial information system, the adoption of up-to-date taxation methods, the existence of inefficient tax exemptions, inadequate training for both tax officers and taxpayers regarding their rights and obligations, the need to enhance tax culture, clarity on how tax revenues are allocated, and combating administrative corruption. Addressing these challenges first requires a sound legal and regulatory framework, and within the scope of executive implementation, will ultimately lead to reduced tax evasion, increased public satisfaction, and sustainable development.