EXPLORING HETEROGENEOUS EFFECTS IN CAPACITY MEASUREMENT: A QUANTILE REGRESSION STUDY OF

Taxation stands as a cornerstone in the economic landscape of nations, serving both as a critical source of state revenue and a mechanism for income redistribution and economic stability. Within the realm of public finance, studies on taxation occupy a pivotal position, addressing the intricate interplay of taxes in government budgets and the broader pursuit of national objectives.This study centers on Iraq's tax structure, seeking to elucidate the metrics of capacity taxation. In Iraq, taxes predominantly target financial assets, with no individual income tax in place. The tax system is characterized by a fusion of direct and indirect taxes, embodying a multifaceted approach rather than a singular tax system. Direct taxes encompass income taxes and property taxes, with a specific focus on real property or land taxation. Conversely, indirect taxes encompass consumption and trade taxes.This paper presents a comprehensive overview of Iraq's current tax landscape, encapsulated in a flipchart diagram. Understanding the intricacies of Iraq's tax structure is essential for assessing its fiscal policies and their alignment with broader national goals.