Impact of Tax Implementation on Fintech P2P Loans in Indonesia
Keywords:
tax, fintech, loan, p2p
Abstract
This research paper aims to examine the impact of tax implementation on the number of P2P loan recipients and the amount of P2P loan disbursement in fintech industry of Indonesia. This empirical study is based on the number of accounts and loan data acquired from one of Indonesia’s government agencies – the Financial Services Authority (OJK) from February 2022 to April 2022 and June 2022 to August 2022 that are analyzed using various tests such as Skewness-Kurtosis Test, the variance ratio test, and t-test. The results show that tax implementation does not significantly affect the number of P2P loan recipients and the amount of P2P loan disbursement. This is because fintech offers greater benefits than traditional banks, such as convenience, time-saving, more access to financial products, and better security measures. The limited amount of available data and the number of provinces available become the limitation of the study to obtain optimum results.
References
Anifa, M., Ramakrishnan, S., Joghee, S., Kabiraj, S., & Bishnoi, M. M. (2022). Fintech Innovations in the Financial Service Industry. Journal of Risk and Financial Management, 15(7). https://doi.org/10.3390/jrfm15070287
Ayuba, A., & Ariffin, N. S. Z. Z. (2016). Perceived Service Orientation, Economic Factors, Psychological Factors and Tax Compliance: Evidence From Nigerian SMEs. Management Journal, 20(December), 41–57.
Chulawate, N., & Kiattisin, S. (2023). Success Factors Influencing Peer-to-Peer Lending to Support Financial Innovation. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054028
Fogarty, J. J. (2009). A Review of Alcohol Consumption and Alcohol Control Policies. Worldwide Hospitality and Tourism Themes, 1(2), 110–132. https://doi.org/10.1108/17554210910962503
Hummel, D. (2018). The Potential Effects of the Social Costs from Alcohol Consumption on State Financial Condition. Journal of Public Budgeting, Accounting and Financial Management, 30(1), 72–87. https://doi.org/10.1108/JPBAFM-03-2018-006
Immurana, M., Boachie, M. K., & Iddrisu, A. A. (2021). The Effects of Tobacco Taxation and Pricing on the Prevalence of Smoking in Africa. Global Health Research and Policy, 6(1). https://doi.org/10.1186/s41256-021-00197-0
Katz, R., & Jung, J. (2023). The Impact of Taxation in the Telecommunications Industry. Information Economics and Policy, 62. https://doi.org/10.1016/j.infoecopol.2023.101016
Kohardinata, C., Suhardianto, N., & Tjahjadi, B. (2020). Peer-to-Peer Lending Platform: From Substitution to Complementary for Rural Banks. Business: Theory and Practice, 21(2), 713–722. https://doi.org/10.3846/btp.2020.12606
Lenz, R. (2016). Peer-to-Peer Lending: Opportunities and Risks. European Journal of Risk Regulation (EJRR), 7(4), 688–700. http://www.bankofengland.co.uk/publications/Pages/
Luo, S., Sun, Y., & Zhou, R. (2022). Can Fintech Innovation Promote Household Consumption? Evidence from China Family Panel Studies. International Review of Financial Analysis, 82. https://doi.org/10.1016/j.irfa.2022.102137
Mukherjee, A., & Ekanayake, E. M. (2018). Global Alliance Against Tobacco. Journal of Applied Business and Economics, 20(3), 178–190.
Nazar, G. P., Sharma, N., Chugh, A., Abdullah, S. M., Lina, S., Mdege, N. D., John, R. M., Huque, R., Bauld, L., & Arora, M. (2021). Impact of Tobacco Price and Taxation on Affordability and Consumption of Tobacco Products in the South-East Asia Region: A Systematic Review. In Tobacco Induced Diseases (Vol. 19, Issue December). European Publishing. https://doi.org/10.18332/tid/143179
Nguyen, T. H. (2022). The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam. Economies, 10(8). https://doi.org/10.3390/economies10080179
Özçam, A. (2014). Should Before or After Tax Equilibria Point Elasticities Be Calculated When the Laffer Effect Is Considered in a Micro Market? Journal of Economic Studies, 41(6), 754–770. https://doi.org/10.1108/JES-11-2012-0152
Putriani, J. D., & Hudaidah. (2021). Penerapan Pendidikan Indonesia Di Era Revolusi Industri 4.0. EDUKATIF : JURNAL ILMU PENDIDIKAN, 3(3), 830–838. https://doi.org/10.31004/edukatif.v3i3.407
Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2P Lending Adoption by SMEs in Indonesia. Qualitative Research in Financial Markets, 11(2), 260–279. https://doi.org/10.1108/QRFM-09-2018-0103
Seid, A. K., Grittner, U., Greenfield, T. K., & Bloomfield, K. (2015). To Cause Harm and to Be Harmed by Others: New perspectives on Alcohol’s Harms to Others. Substance Abuse: Research and Treatment, 9, 13–22. https://doi.org/10.4137/SART.S23506
Shahzad, A., Zahrullail, N., Akbar, A., Mohelska, H., & Hussain, A. (2022). COVID-19’s Impact on Fintech Adoption: Behavioral Intention to Use the Financial Portal. Journal of Risk and Financial Management, 15(10). https://doi.org/10.3390/jrfm15100428
Shin, Y. J., & Choi, Y. (2019). Feasibility of The Fintech Industry as an Innovation Platform For Sustainable Economic Growth in Korea. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195351
Singh, A. K., & Sharma, P. (2022). A Study of Indian Gen X and Millennials Consumers’ Intention to Use FinTech Payment Services During COVID-19 Pandemic. Journal of Modelling in Management. https://doi.org/10.1108/JM2-02-2022-0059
Song, P., Chen, Y., Zhou, Z., & Wu, H. (2018). Performance Analysis of Peer-to-Peer Online Lending Platforms in China. Sustainability (Switzerland), 10(9). https://doi.org/10.3390/su10092987
Sumartono, S., & Huda, N. (2020). Manajemen Pendidikan Di Indonesia Sebagai Implementasi Triple Helix Untuk Mempersiapkan Revolusi Industri 4.0. Jurnal Andi Djemma | Jurnal Pendidikan, 3(1).
Taujanskaitė, K., & Kuizinaitė, J. (2022). Development of Fintech Business in Lithuania: Driving Factors and Future Scenarios. Business, Management and Economics Engineering, 20(1), 96–118. https://doi.org/10.3846/bmee.2022.16738
Wang, D., Peng, K., Tang, K., & Wu, Y. (2022). Does Fintech Development Enhance Corporate ESG Performance? Evidence from an Emerging Market. Sustainability (Switzerland), 14(24). https://doi.org/10.3390/su142416597
Wang, L., Rousek, P., & Hašková, S. (2021). Laffer Curve - A Comparative Study Across the V4 (Visegrad) countries. Entrepreneurship and Sustainability Issues, 9(2), 433–445. https://doi.org/10.9770/jesi.2021.9.2(28)
Wei, X., Gotoh, J. Y., & Uryasev, S. (2018). Peer-to-Peer Lending: Classification in the Loan Application Process. Risks, 6(4). https://doi.org/10.3390/risks6040129
Yang, X., Fan, W., & Yang, S. (2020). Identifying the Influencing Factors on Investors’ Investment Behavior: An Empirical Study Focusing on the Chinese P2P lending Market. Sustainability (Switzerland), 12(13). https://doi.org/10.3390/su12135345
Yunus, U. (2019). A Comparison Peer to Peer Lending Platforms in Singapore and Indonesia. Journal of Physics: Conference Series, 1235(1). https://doi.org/10.1088/1742-6596/1235/1/012008
Ayuba, A., & Ariffin, N. S. Z. Z. (2016). Perceived Service Orientation, Economic Factors, Psychological Factors and Tax Compliance: Evidence From Nigerian SMEs. Management Journal, 20(December), 41–57.
Chulawate, N., & Kiattisin, S. (2023). Success Factors Influencing Peer-to-Peer Lending to Support Financial Innovation. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054028
Fogarty, J. J. (2009). A Review of Alcohol Consumption and Alcohol Control Policies. Worldwide Hospitality and Tourism Themes, 1(2), 110–132. https://doi.org/10.1108/17554210910962503
Hummel, D. (2018). The Potential Effects of the Social Costs from Alcohol Consumption on State Financial Condition. Journal of Public Budgeting, Accounting and Financial Management, 30(1), 72–87. https://doi.org/10.1108/JPBAFM-03-2018-006
Immurana, M., Boachie, M. K., & Iddrisu, A. A. (2021). The Effects of Tobacco Taxation and Pricing on the Prevalence of Smoking in Africa. Global Health Research and Policy, 6(1). https://doi.org/10.1186/s41256-021-00197-0
Katz, R., & Jung, J. (2023). The Impact of Taxation in the Telecommunications Industry. Information Economics and Policy, 62. https://doi.org/10.1016/j.infoecopol.2023.101016
Kohardinata, C., Suhardianto, N., & Tjahjadi, B. (2020). Peer-to-Peer Lending Platform: From Substitution to Complementary for Rural Banks. Business: Theory and Practice, 21(2), 713–722. https://doi.org/10.3846/btp.2020.12606
Lenz, R. (2016). Peer-to-Peer Lending: Opportunities and Risks. European Journal of Risk Regulation (EJRR), 7(4), 688–700. http://www.bankofengland.co.uk/publications/Pages/
Luo, S., Sun, Y., & Zhou, R. (2022). Can Fintech Innovation Promote Household Consumption? Evidence from China Family Panel Studies. International Review of Financial Analysis, 82. https://doi.org/10.1016/j.irfa.2022.102137
Mukherjee, A., & Ekanayake, E. M. (2018). Global Alliance Against Tobacco. Journal of Applied Business and Economics, 20(3), 178–190.
Nazar, G. P., Sharma, N., Chugh, A., Abdullah, S. M., Lina, S., Mdege, N. D., John, R. M., Huque, R., Bauld, L., & Arora, M. (2021). Impact of Tobacco Price and Taxation on Affordability and Consumption of Tobacco Products in the South-East Asia Region: A Systematic Review. In Tobacco Induced Diseases (Vol. 19, Issue December). European Publishing. https://doi.org/10.18332/tid/143179
Nguyen, T. H. (2022). The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam. Economies, 10(8). https://doi.org/10.3390/economies10080179
Özçam, A. (2014). Should Before or After Tax Equilibria Point Elasticities Be Calculated When the Laffer Effect Is Considered in a Micro Market? Journal of Economic Studies, 41(6), 754–770. https://doi.org/10.1108/JES-11-2012-0152
Putriani, J. D., & Hudaidah. (2021). Penerapan Pendidikan Indonesia Di Era Revolusi Industri 4.0. EDUKATIF : JURNAL ILMU PENDIDIKAN, 3(3), 830–838. https://doi.org/10.31004/edukatif.v3i3.407
Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2P Lending Adoption by SMEs in Indonesia. Qualitative Research in Financial Markets, 11(2), 260–279. https://doi.org/10.1108/QRFM-09-2018-0103
Seid, A. K., Grittner, U., Greenfield, T. K., & Bloomfield, K. (2015). To Cause Harm and to Be Harmed by Others: New perspectives on Alcohol’s Harms to Others. Substance Abuse: Research and Treatment, 9, 13–22. https://doi.org/10.4137/SART.S23506
Shahzad, A., Zahrullail, N., Akbar, A., Mohelska, H., & Hussain, A. (2022). COVID-19’s Impact on Fintech Adoption: Behavioral Intention to Use the Financial Portal. Journal of Risk and Financial Management, 15(10). https://doi.org/10.3390/jrfm15100428
Shin, Y. J., & Choi, Y. (2019). Feasibility of The Fintech Industry as an Innovation Platform For Sustainable Economic Growth in Korea. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195351
Singh, A. K., & Sharma, P. (2022). A Study of Indian Gen X and Millennials Consumers’ Intention to Use FinTech Payment Services During COVID-19 Pandemic. Journal of Modelling in Management. https://doi.org/10.1108/JM2-02-2022-0059
Song, P., Chen, Y., Zhou, Z., & Wu, H. (2018). Performance Analysis of Peer-to-Peer Online Lending Platforms in China. Sustainability (Switzerland), 10(9). https://doi.org/10.3390/su10092987
Sumartono, S., & Huda, N. (2020). Manajemen Pendidikan Di Indonesia Sebagai Implementasi Triple Helix Untuk Mempersiapkan Revolusi Industri 4.0. Jurnal Andi Djemma | Jurnal Pendidikan, 3(1).
Taujanskaitė, K., & Kuizinaitė, J. (2022). Development of Fintech Business in Lithuania: Driving Factors and Future Scenarios. Business, Management and Economics Engineering, 20(1), 96–118. https://doi.org/10.3846/bmee.2022.16738
Wang, D., Peng, K., Tang, K., & Wu, Y. (2022). Does Fintech Development Enhance Corporate ESG Performance? Evidence from an Emerging Market. Sustainability (Switzerland), 14(24). https://doi.org/10.3390/su142416597
Wang, L., Rousek, P., & Hašková, S. (2021). Laffer Curve - A Comparative Study Across the V4 (Visegrad) countries. Entrepreneurship and Sustainability Issues, 9(2), 433–445. https://doi.org/10.9770/jesi.2021.9.2(28)
Wei, X., Gotoh, J. Y., & Uryasev, S. (2018). Peer-to-Peer Lending: Classification in the Loan Application Process. Risks, 6(4). https://doi.org/10.3390/risks6040129
Yang, X., Fan, W., & Yang, S. (2020). Identifying the Influencing Factors on Investors’ Investment Behavior: An Empirical Study Focusing on the Chinese P2P lending Market. Sustainability (Switzerland), 12(13). https://doi.org/10.3390/su12135345
Yunus, U. (2019). A Comparison Peer to Peer Lending Platforms in Singapore and Indonesia. Journal of Physics: Conference Series, 1235(1). https://doi.org/10.1088/1742-6596/1235/1/012008
