The Degree of Equality of the Tax Exemption and Ratios in the Value Added Tax System Applied In Palestine

This is a study about the Value Added Tax (VAT), tax of rates and exemptions. The study started by determining the statement of the problem, goals and methodology of the research. A comprehensive review of literature of the tax laws, revenues, exemptions, deductions given to tax payers, and tax rates in many countries of the world were reviewed. Several books, journals, and reports in West bank and Jordanian universities and institutions' libraries were consulted. Moreover, Central bank reports and publications and internet sites were investigated. A review of any indirect taxes, fees and exemptions, deductions which are in force were analyzed. Taxpayer's duties were examined. Revenue rates of direct as well as indirect taxes to total revenue, and total revenues from taxes were compared. Besides, VAT to total revenues was carried. VAT law applied in Palestine was examined to know the tax burdens, deductions, and exemptions, for the purpose of comparison with other countries in these areas. These countries include Europe, Africa, Asia and America. The ratio of direct tax to total revenues, and direct tax burden were found to be the lowest among countries under study.While, indirect taxes ratio to total revenues in Palestine was the highest among these countries. These results indicated that the Palestinian tax system is distorted. In order to answer questions raised in this study, a field work study was conducted through the design of the questionnaire; distributed to a sample of 400 subjects, including businessmen, tax employees, and auditors. A pilot study was conducted, and the questionnaire was amended accordingly. 199 valid retained questionnaires were analyzed using SPSS. And the results were shown in the study. The study consisted of eight chapters. The first was an introductory in nature, while, the second examined the tax types. Chapter three and four were devoted to Tax Laws and revenues in several countries of the world. Comparison between tax revenues, rates, and tax burden in many countries were found in chapter five. Chapter six compared the tax rates and exemptions in Palestine with those in other countries. While, chapter seven presents the results of the field work study. Chapter eight presents the conclusions and recommendations of the study.