Exploring Indonesian Tax Ratio Development 1970-2010

Ignatia Martha, Hendrati and Mandala, Manurung (2012) Exploring Indonesian Tax Ratio Development 1970-2010. In: A4 Public Finance Management Conference , 13-14 November 2012, Surabaya.

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    Abstract

    In 2012, Indonesia ' s tax ratio is only 11.2% of GDP. This igure is far lower than the ratio of the ASEAN counties, even compared with China , s state though. Symptoms of the above begs the question, how the actual tax rate developments in Indonesia? Factors-factors that inluence the growth rate of tax? Is the increase in the tax ratio needs to worry about. Using descriptive analysis shows that the end of the 1960s, Indonesia tax ratio is only 6% of GDP and only in the late 1980s was able to reach 10% of GDP. Thus, during the period 1960 to 1980, Indonesia tax ratio grew only 2% / year, much lower than the rate of economic growth in the same period. Its a bit worrying for the past two decades the growth of tax ratio to stagnate, as it only increased to 12% of GDP. While the estimation results using an econometric model suggests that economic growth is actually very A potential for raising the taxes and the Indonesian context, if the tax rate is 6%, then the increase in the ratio of taxes it would stimulate economic growth. Because it Is a progressive tax policy in Indonesia do not have to worry about

    Item Type: Conference or Workshop Item (Paper)
    Subjects: H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning
    Divisions: Conference/Seminar
    Depositing User: Users 2 not found.
    Date Deposited: 16 Aug 2014 12:23
    Last Modified: 22 Sep 2014 13:44
    URI: http://eprints.upnjatim.ac.id/id/eprint/6173

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