Pursuing Tax Ratios in the Midst of Structural Transformation

Please note that this article was automatically translated using Microsoft Azure AI, Open AI, and Google Translation AI. We cannot ensure that the entire content is translated accurately. If you spot any errors or inconsistencies, contact us atOne of the campaign promises of the Prabowo Subianto-Gibran Rakabuming Raka couple, who will soon take over the Indonesian presidential throne, is to realize the target) of 23 percent .

Tampering with the"numerator" components is a shortcut to boost the tax ratio. For example, by expanding the definition of tax revenue to include local taxes and natural resource revenues that are in line with the IMF's calculation model. The above thesis is justified by the fact that the tax elasticity coefficient in 2023 is only 1.3. This figure is obtained by comparing tax growth and GDP growth in 2023. In other words, a 1 percent GDP growth is only able to increase tax revenue by 1.3 percent. Empirical evidence also confirms that no country is able to double tax revenue from GDP growth .The low tax elasticity coefficient may be closely related to the structure of GDP formation in Indonesia.

This problem is increasingly relevant in the Indonesian context where structural transformation is mainly driven by an increase in nonmarket services activities, such as health, education and social services. This group of services constitutes certain taxable services which are strategic in nature so they are exempt from Value Added Tax . This is stated in Law No. 7/2021 concerning Harmonization of Tax Regulations .

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Prabowo's Gathering in the Midst of the Issue of Tensions for Ministerial SeatsPrabowo Subianto is intensely visiting the general chairman of his supporting political party in the 2024 presidential election. Is it just an Eid friendship?
Sumber: hariankompas - 🏆 8. / 70 Baca lebih lajut »

Student Organizations in the Midst of the Internship Era, Are They Still Relevant?Today's student movement does not have to be represented by taking to the streets. Social media is now also an option.
Sumber: hariankompas - 🏆 8. / 70 Baca lebih lajut »

Pursuing Clean Energy, from Russia to the WorldNuclear Power Plants are an alternative for providing clean energy. Russia is developing it in a number of countries.
Sumber: hariankompas - 🏆 8. / 70 Baca lebih lajut »

Pursuing a recapitulation deadline, KPU members from Papua use a charter plane to JakartaToday is the deadline for completing the vote recapitulation for the 2024 General Election. The recapitulation is hampered by the fact that votes from Papua have not yet arrived.
Sumber: hariankompas - 🏆 8. / 70 Baca lebih lajut »

Disadvantages Shadow Players and Clubs from Postponement of League 1In the midst of pursuing achievements in the U-23 Asian Cup, the interests of hundreds of players and 18 clubs felt sacrificed.
Sumber: hariankompas - 🏆 8. / 70 Baca lebih lajut »

Indonesia to Increase Limit for Tax-Free Migrant Workers' ShipmentsThe Indonesian Migrant Workers Protection Agency (BP2MI) has confirmed that the limit for tax-free shipments of Indonesian Migrant Workers (PMI) will increase from US$1,500 per year to a maximum of US$2,800 per year. The proposal was submitted by BP2MI Head Benny Rhamdani during a limited meeting at the Coordinating Ministry for Economic Affairs on Tuesday (16/4/2024). During the meeting, Coordinating Minister for Economic Affairs Airlangga Hartarto and Trade Minister Zulkifli Hasan agreed to raise the limit for PMI shipments.
Sumber: cnbcindonesia - 🏆 7. / 74 Baca lebih lajut »