Ma`rifat Eqtesadi

Capital gains tax has garnered significant attention as a regulatory economic tool in various countries, including Iran, in recent decades. This tax aims to redirect resources from non-productive sectors to productive areas of the economy while also addressing income inequality. However, the associated jurisprudential, economic, and practical challenges necessitate a more thorough examination of its implementation in the country. This study draws on religious sources as well as the potential of existing laws, regulations, and economic structures to analyze the jurisprudential and economic aspects of regulatory taxation. It seeks to answer two fundamental questions: First, can the government, assuming alternative solutions exist, utilize taxation as a tool for market regulation? Second, if this approach is accepted, what economic and practical challenges will arise? The findings indicate that neglecting the origins of regulatory taxation in the West, the more comprehensive effectiveness of social deprivation over mere financial and profitability limitations, the conflict of regulatory taxation with certain Sharia principles such as the rule of no harm, alongside the existing capacity of the country’s tax laws to prevent market speculation, the lack of necessary infrastructure, and the risk of transforming this tax into a purely revenue-generating tool are among the main obstacles to the effective implementation of capital gains tax. Therefore, this research emphasizes the need to establish strong jurisprudential and economic foundations as well as the necessary infrastructure for the proper execution of this type of taxation.