The impact of the Indonesian income tax reform: A CGE analysis

Amir, Hidayat; Asafu‐Adjaye, John; Ducpham, Tien

doi:10.1016/j.econmod.2012.12.018

Cited by 38 publications

(38 citation statements)

References 24 publications

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“…This policy also decreased prices in the transportation and communication sector, petroleum refineries sector, and electricity sectors (Online Supplemental Appendix 5). Under a non-balanced budget, Amir et al (2013) found that a decrease in the Indonesian CIT rate caused a reduction in output in some sectors, while the prices in all sectors increased. For balanced budgets, they reported that all outputs increased while all prices decreased.…”

Section: Analysis Of Model Resultsmentioning

confidence: 99%

“…Researchers have tried to fill the gap in the literature by applying general equilibrium theory to analyse the impact of tax, other policies and other external shocks on all sectors of the economy. For example, Amir et al (2013) used the computable general equilibrium (CGE) model to explain how, for Indonesia, reductions in personal income tax (PIT) and corporate income tax (CIT) increased economic growth and income inequality. The findings revealed that under both a balanced budget and non-balanced budget, the reduction in PIT and CIT reduced the poverty level in Indonesia, but the CIT policy had no impact on income inequality.…”

Section: Introductionmentioning

confidence: 99%

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General Equilibrium Impacts of VAT and Corporate Income Tax in Thailand

Benjasak

Bhattarai

2019

Int Adv Econ Res

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In this paper, a computable general equilibrium model of Thailand is constructed in order to assess economy-wide impacts of reforms in the value added tax (VAT) and corporate income tax (CIT) on welfare and reallocation of resources across production sectors in the Thai economy. The model was calibrated to the micro-consistent benchmark data set contained in the Input-Output Table 2010 published by the Office of National Economics and Social Development Board with restructuring into 18 sectors. Findings reveal that aggregate net changes in welfare from a 10% VAT rate are better than from a 0% VAT. Thus, increasing VAT from 7 to 10% is a desirable policy action on the basis of economy-wide welfare analysis because utility generated from public services for the households more than compensates their loss in utility due to higher taxes. On a net welfare basis, decreasing the CIT rate from 30 to 20% is more preferable policy than reducing it to 23%. This model-based analysis is a unique contribution to the current literature on impacts of VAT and CIT in the Thai economy. Further scope remains for full impact analysis of comprehensive reforms such as the goods and services tax, with a dynamic model and many households.

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Section: Analysis Of Model Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

General Equilibrium Impacts of VAT and Corporate Income Tax in Thailand

Benjasak

Bhattarai

2019

Int Adv Econ Res

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“…Bahkan, salah seorang pembicara dari Singapura menyatakan bahwa amnesti pajak sebagai the second best policy dan program tax amnesty di Indonesia dapat dijadikan model dunia di dalam konferensi tentang International Wealth Transfer di London pada bulan Maret 2017 (Kis-Katos & Sjahrir, 2017). Keberhasilan tax amnesty di Indonesia menurut Amir, Asafu-Adjaye, & Ducpham (2013) dipengaruhi oleh fitur program yang menarik, kerja keras dari peme rintah, dukungan politik, dan kerja sama dengan pihak lain. Tax Amnesty sebagai evolusi politik, lebih memperhatikan materialisme dan mengabaikan keadilan de ngan tujuan wajib pajak patuh (Darmayasa, Sudarma, Achsin, & Mulawarman, 2016).…”

Section: Hasil Dan Pembahasanunclassified

Ada Apa Setelah Tax Amnesty?

Okfitasari¹,

Meikhati²,

Setyaningsih

2017

jamal

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Çaşkurlu, 2011) dan pertumbuhan ekonomi negara (Huda & Hernoko, 2017). Pelaksanaan tax amnesty juga diharapkan menjadi momentum awal adanya perubahan perilaku kepatuhan sukarela yang lebih baik dari wajib pajak (Agbonika, 2015; Gupta & Lynch, 2016). Diharapkan dengan adanya tax amnesty, sumber dana wajib pajak yang ada di luar negeri dapat kembali masuk ke dalam negeri dan dalam jangka panjang dapat digunakan sebagai tambahan investasi dalam negeri untuk mendukung perekonomian nasional (Hamilton-Hart & Schulze, 2016). Dari sudut pandang fiskus, tax amnesty dilaksanakan untuk memperluas basis data perpajakan dan reformasi sistem (Bimon

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“…The CGE model used for the policy simulations is modified from Indofiscal (Amir, 2011;Amir et al, 2013) to have more detailed categories of 175 industries/commodities (as the 2005 standard IO table). Increasing the number of industry/commodity categories to have more detailed information of minerals industries caused labour categories to be aggregated from 16 categories into only one category.…”

Section: Summary Of Cge Model's Featuresmentioning

confidence: 99%

Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach

Amir

2013

IJEPS

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In May 2012, the Indonesian government implemented a series of new mineral export restrictions: (1) Regulation of Minister Energy and Mineral Resources (MEMR) No. 7/2012 to ban export of unprocessed metals and non-metallic minerals, and then revised by Regulation of MEMR No. 11/2012; (2) Regulation of Minister of Trade (MOT) No. 29/M-DAG/PER/5/2012 to clarify the position on exports of unprocessed minerals and ores; and (3) Regulation of Ministry of Finance (MOF) No. 75/PMK.011/2012 to impose export tax on these commodities. The main objective of these series of regulations is to increase the value added of the domestic processing industries as stipulated by Law No.4/2009, through giving incentives to mineral processing industries and disincentives (impose tax) on unprocessed mineral exports. This study analyses the impact of these new mineral export restriction policies on the Indonesian economy within a computable general equilibrium (CGE) framework. The model's database is consolidated from three key data sources: (a) the 2005 Indonesian Input-Output (IO) Table; (b) the 2005 Indonesian Social Accounting Matrix (SAM); and (c) the 2005 National Socioeconomic Survey (Susenas). All the data were published by BPS-Statistics Indonesia. This study investigates how the export tax policy affects the country's economy not only at a macrolevel, such as the impact on economic growth, industrial output, and employment, but also at a micro-level, such as impacts on poverty and income distribution.

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The impact of the Indonesian income tax reform: A CGE analysis

Cited by 38 publications

References 24 publications

General Equilibrium Impacts of VAT and Corporate Income Tax in Thailand

General Equilibrium Impacts of VAT and Corporate Income Tax in Thailand

Ada Apa Setelah Tax Amnesty?

Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach

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