Long-Term Effect of Taxation as a Fiscal Policy Instrument for National Economic Recovery
Keywords:
Covid-19, tax ratio, GDP, Fiscal, Indonesia
Abstract
Taxation is a fiscal policy instrument that has a nearly 70% influence on the state budget and has a positive effect on the country's economy. The foundation for implementing state tax collection procedures is tax reform. Because of the pandemic situation, the government has been forced to implement tax reform (Law No. 7 of 2021) in order to prepare for the slowing national economy. The primary goal of this research is to determine how GDP responds to changes in tax instruments. GDP, government spending, the ratio of tax revenues, PPn, PPh, and government spending were used as samples from 1990 to 2020. The VAR approach was used because it can show how each variable responds to shocks from other variables. The findings indicate that the causality test occurs between the VAT variable and the tax-to-GDP ratio variable. The IRF output represents the overall GDP's positive response to shocks in each variable. Suggestions for increasing tax revenue, the government should optimize PPn and PPh as policy instruments to improve the economy in the face of the Covid-19 Pandemic.
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Desideria, E., & Ngadiman. (2019). Faktor-Faktor Yang Mempengaruhi Penerimaan Pajak Dari Wajib Pajak Badan Tahun 2016-2017. Jurnal Multiparadigma Akuntansi, 1(2), 355–363. https://doi.org/10.24912/jpa.v1i2.5003
Faizin, M. (2021). Penerapan Vector Error Correction Model pada Hubungan Kurs, Inflasi dan Suku Bunga. E-Journal Ekonomi Bisnis Dan Akuntansi, 8(1), 33. https://doi.org/10.19184/ejeba.v8i1.18810
Gruber, J. (2015). Public Finance and Public Policy. In Worth Publishers. Worth Publishers.
Gujarati, D. N., & Porter, D. C. (2009). Basic Economettrics. In McGraw-Hill (5th ed.). Douglas Reiner.
Hayman, D. N. (2010). Public Finance: A Contemporary Application of Theory to Policy (10th ed.).
Junaedi, D., & Salistia, F. (2020). DAMPAK PANDEMI COVID-19 JTERHADAP PERTUMBUHAN EKONOMI NEGARA-NEGARA TERDAMPAK. https://jurnal.bppk.kemenkeu.go.id/snkn/article/view/600
Lativa, S. (2021). Analisis Kebijakan Fiskal Indonesia Pada Masa Pandemi COVID-19 dalam Meningkatkan Perekonomian. Jurnal Ekonomi, 2021(3), 15.
Mahadevan, R., & Asafu-Adjaye, J. (2007). Energy consumption, economic growth and prices: A reassessment using panel VECM for developed and developing countries. Energy Policy, 35(4), 2481–2490. https://doi.org/10.1016/j.enpol.2006.08.019
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Palupy, H. E., & Basuki, M. U. (2019). Analisis Pengaruh Investasi Dan Budget Deficit Terhadap Pertumbuhan Di Indonesia. Diponegoro Journal of Economics, 1(1), 67. https://ejournal2.undip.ac.id/index.php/dje
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Saragih, A. H. (2018). Pengaruh Penerimaan Pajak Terhadap Pertumbuhan Ekonomi Di Indonesia. Jurnal SIKAP (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 3(1), 17. https://doi.org/10.32897/jsikap.v3i1.103
Sihaloho, E. D. (2020a). Analisis pengaruh penerimaan pajak terhadap pertumbuhan ekonomi indonesia : pendekatan vektor autoregressive Analisis pengaruh penerimaan pajak terhadap pertumbuhan ekonomi indonesia : pendekatan vektor autoregressive. Forum Ekonomi, 22(2), 202–209.
Sihaloho, E. D. (2020b). Dampak Covid-19 Terhadap Perekonomian Indonesia Dampak Covid-19 Terhadap Perekonomian Indonesia. Jurnal Ilmiah Mahasiswa Ekonomi Syariah, 1(1), 7–12. https://doi.org/10.13140/RG.2.2.13651.94241/1
Sinay, L. J. (2014). Pendekatan Vector Error Correction Model untuk Analisis Hubungan Inflasi, Bi Rate dan Kurs Dolar Amerika Serikat. BAREKENG: Jurnal Ilmu Matematika Dan Terapan, 8(2), 9–18. https://doi.org/10.30598/barekengvol8iss2pp9-18
Sulistiana, I., Hidayati, & Sumar. (2017). Model Vector Auto Regression (Var) and Vector Error Correction Model (Vecm) Approach for Inflation Relations Analysis, Gross Regional Domestic Product (Gdp), World Tin Price, Bi Rate and Rupiah Exchange Rate. Integrated Journal of Business and Economics, 1(2), 17–32. https://doi.org/https://doi.org/10.5281/zenodo.1147673
