authors
Ahmed Naguib Saleh

abstract
The research aims to examine the impact of indirect taxes on the gross fixed capital formation in Iraq during the studied period. Accordingly, the research hypothesis was formulated, stating that indirect taxes exert a weak inverse effect on fixed capital formation in Iraq. The inductive approach was adopted alongside statistical methods to achieve the desired research outcomes. The analysis concluded that indirect taxes exert a weak inverse effect on the gross fixed capital formation within the Iraqi economic system during the studied period (2003-2020). Consequently, the research recommends the establishment of a clear vision and a long-term strategy to mitigate the negative impact of indirect taxes on gross fixed capital formation. This can be achieved by restructuring tax laws and systems to support sectors contributing to capital formation, such as imposing taxes on imports of locally produced goods, reducing or regulating income taxes, or redirecting tax revenues toward productive projects.