Prioritizing the Factors Affecting the Imposition of Capital Gains Tax on Shares in the Stock Exchange

Abstract

The objective of this study is to identify, analyze, and prioritize the key factors influencing the feasibility of imposing a capital gains tax on shares in the stock exchange. This study adopts an applied, descriptive–analytical research design using a multi-criteria decision-making framework. Data were collected through a combination of library-based studies, expert interviews, and structured questionnaires. The study population consisted of taxation and stock market experts selected through purposive judgmental sampling. After identifying relevant criteria and sub-criteria through theoretical review and expert consultation, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method was used to determine causal relationships among the main criteria. Subsequently, the Analytical Network Process (ANP) was employed to assign relative weights and priorities to the criteria and sub-criteria while accounting for interdependencies and feedback effects. Reliability and validity of expert judgments were assessed through consistency and content validity checks using specialized decision-making software. The inferential results indicate that government-related considerations exert the strongest causal influence on the feasibility of imposing a capital gains tax on shares, followed by legal and informational factors. Environmental factors play a moderate role, while technological and human factors are largely effect-oriented and dependent. At the sub-criterion level, economic balance and government revenue generation rank as the most influential factors, followed by the existence and transparency of laws and the control of speculative profit opportunities. Factors related to technology, system capabilities, and human resources receive comparatively lower priority weights, indicating their supportive rather than driving role in the feasibility assessment. The findings demonstrate that the feasibility of imposing capital gains tax on shares is primarily determined by macro-fiscal objectives and institutional readiness, supported by legal clarity and regulatory coherence, with environmental and operational factors playing secondary roles.