Educoretax

Dynamics of fiscal resilience: A comparative analysis of tax buoyancy in South and Southeast Asia

Wed, 02 Apr 2025 00:00:00 +0000

This research aims to explore, analyze, and compare tax buoyancy in South Asian and Southeast Asian countries through a comprehensive literature study approach. The secondary data used in this study were obtained from various reliable sources such as indexed academic journals, reports from international organizations (IMF, World Bank, ADB), and government policy documents. The analysis shows significant variations in tax buoyancy across countries, influenced by the complexity of tax systems, effectiveness of fiscal policies, levels of tax compliance, and macroeconomic conditions. Countries with more efficient tax administration systems, broad tax bases, and higher compliance levels exhibit greater tax buoyancy (>1), reflecting tax revenue capacity that is responsive to economic growth. Conversely, countries with less effective tax systems, narrow tax bases, and low compliance experience lower tax buoyancy (<1). This research reveals that income taxes and value-added taxes consistently show higher buoyancy compared to customs duties and excise taxes in both regions. These findings provide important policy implications for the development of more adaptive and effective fiscal policies in the region, particularly through comprehensive tax reforms, strengthening tax administration, broadening the tax base, and improving taxpayer compliance to support sustainable economic development.

Beyond emissions: A comprehensive analysis of carbon tax as a catalyst for environmental and economic transformation in Indonesia

Wed, 02 Apr 2025 00:00:00 +0000

Climate change and environmental degradation caused by carbon emissions have emerged as significant global challenges, prompting the search for effective fiscal policies for mitigation without impeding economic growth. This research critically analyzes the effectiveness and implications of carbon tax policies in Indonesia in reducing emissions and promoting environmental sustainability. Through a comprehensive systematic literature review approach, this study analyzes empirical evidence from various jurisdictions and models its potential impact in the Indonesian context. The results indicate that carbon tax implementation in Indonesia could reduce emissions by 3.2%-8.6% by 2030 compared to business-as-usual scenarios, with the greatest effects in the energy sector and carbon-intensive industries. Key findings suggest that optimal carbon tax design requires progressive rate structures, equitable revenue distribution mechanisms, and integration with complementary policy instruments. This research also identifies specific challenges for carbon tax implementation in Indonesia, including carbon leakage risks, distributional impacts, and institutional capacity limitations. The study contributes to the literature by offering a comprehensive framework for carbon tax policy reform that maximizes emission reductions while minimizing regressive economic impacts and optimizing environmental and health co-benefits.

The impact of shadow economy and government expenditure on tax ratios: Corruption’s role in ASEAN

Lalu Hizby Briliansyah — Wed, 02 Apr 2025 00:00:00 +0000

This study aims to analyze how shadow economy and government expenditure affect tax ratio and whether corruption perception index (CPI) can moderate these relationships. The shadow economy poses a significant challenge to tax revenue collection. Appropriate government expenditure is also expected to increase the tax base. However, the effectiveness of government expenditure is often undermined by corruption, which erodes public trust and compliance. This research was conducted using panel data regression. The samples used were countries in the ASEAN region between 2012 and 2020. The results show that shadow economy has a significant negative impact on tax ratio, while government expenditure has a positive effect. CPI significantly moderates these relationships, enhancing the negative impact of shadow economy and reducing the positive effect of government expenditure on tax ratio. The study concludes that reducing shadow economy and increasing government expenditure are crucial for improving tax ratio in ASEAN countries. However, the effectiveness of these measures depends on strong corruption control. Policymakers should prioritize anti-corruption efforts to enhance public trust and compliance, thereby optimizing tax revenue collection.

Fiscal independence and economic growth: A case study of Jember district in 2014-2023

Begawan Damar Ngesti — Wed, 02 Apr 2025 00:00:00 +0000

This research aims to study and analyze 1). Growth in local taxes, local retribution, separated regional assets management result, other authorized local revenue, and gross regional domestic product in 2014-2023, 2). The influence of local taxes, local retribution, separated regional assets management result, other authorized local revenue on gross regional domestic product in 2014-2023. This research uses descriptive and quantitative analysis methods through secondary data on the realization of local taxes, local retribution, separated regional assets management result, other authorized local revenue, and gross regional domestic products. Testing of research variables using multiple regression analysis as a whole and partially. Result of research show that 1). Local tax, other authorized local revenue, and gross regional domestic product variables experienced an annual average increase of 11,205%, 11,50%., and 4,08% On the other hand, the variables of local retribution and separated regionall assets management result decreased by 2,44% and 0,35%. 2). Simultaneously, the variables of local taxes, local retribution, separated regional assets management result, other authorized local revenue have a significant effect on regional domestic product with an alpha significance level . While partially, only the local tax variable has a significant influence on gross regional domestic product on gross regional domestic products with an alpha significance level .

The influence of religiosity and tax awareness on tax compliance

Rita Sugiarti, Lutfia Rizkyatul Akbar, Alin Alianny — Thu, 10 Apr 2025 00:00:00 +0000

Tax compliance of citizen becoming important since it influences tax revenue of a country. Moreover, In Indonesia more than 70% of state revenue comes from tax. This study aims to examine the influence of religiosity and tax awareness on tax compliance. The Theory of Planned Behaviour and Social Learning Theory are used as the foundational theories in the analysis. The population is all teachers at Pondok Pesantren Daarussalam Depok. Samples are selected using Saturated Sampling. The number of samples were 57 respondents, consisted of 39 male teachers and 18 female teachers which represent 81% of teacher population (in total 70 teachers) in Pondok Pesantren Darussalam. This study used quantitative approach with primary data from quiestionaires distribution. Data analysis was conducted using analysis of multiple regression. The result indicate that religiosity does not effects on tax compliance, while tax awareness has positive influence. The findings in this study imply the importance of tax awareness, as Indonesia adopt a self-asessment system, where citizen’s tax compliance is greatly influenced by their tax awareness.

Does bank risk-taking behavior affect corporate income tax expenses?

Nafis Dwi Kartiko, Amrie Firmansyah, M. Silahul Mu’min, Muhammad Syariful Anam — Fri, 11 Apr 2025 00:00:00 +0000

This study examines the effect of bank risk-taking behavior on income tax expense recognized in the financial statements. The study uses a secondary data analysis approach to the annual reports and financial statements of 46 banks listed on the Indonesia Stock Exchange from 2004 to 2022, with 566 observations. The sample selection was done purposively based on certain criteria to ensure data completeness and consistency. The analysis technique used is Ordinary Least Squares (OLS) regression to identify the relationship between risk variables and tax expenses. The results show that high risk-taking behavior, as measured by SDROA and SDROE variables, negatively affects the income tax expenses reflected in the effective tax rate (ETR). Banks with high-performance volatility tend to utilize tax planning space to maintain liquidity and profitability. The difference in effect between SOE and non-SOE banks confirms that ownership structure affects flexibility in recognizing tax expenses. Pandemic conditions and reduced corporate income tax rates further strengthen the negative relationship between risk and ETR. Pandemic conditions and the reduction in corporate income tax rates during the 2020-2022 period also increase the bank's room for maneuver to manage the recognition of its tax expenses.

From hearts to treasury: A systematic review of tax morale's impact on revenue collection

Alif Sukhairi Wijaya, Ferry Irawan — Mon, 14 Apr 2025 00:00:00 +0000

This research aims to analyze the relationship between tax morale and tax revenue based on a systematic literature review. Tax morale, as the intrinsic motivation of taxpayers to pay taxes, has become a major focus in efforts to improve tax compliance and tax revenue. Through the Systematic Literature Review (SLR) method, this study examines 57 scientific articles published in Scopus and Web of Science indexed journals during the 2010-2024 period. The analysis results show that there is a positive and significant relationship between tax morale and tax revenue. Factors influencing tax morale include trust in government institutions, perceptions of tax system fairness, social norms, and demographic characteristics of taxpayers. Additionally, it was found that policy interventions focusing on improving tax morale are more effective in increasing tax revenue compared to traditional deterrence approaches. This research provides theoretical and practical implications for developing more effective tax policies by considering the psychological and social aspects of taxpayers.

Shadows and shortfalls: Unraveling the relationship between informal economies and fiscal capacity

Alif Sukhairi Wijaya, Suparna Wijaya — Tue, 15 Apr 2025 00:00:00 +0000

This research aims to analyze the effect of the shadow economy on tax revenue through a Systematic Literature Review (SLR) approach. The shadow economy, which encompasses unrecorded and unreported economic activities, has a significant impact on a country's fiscal capacity. The SLR method was used by conducting a systematic search of the Scopus, Web of Science, and Science Direct databases for publications from 2010-2024. From 1,235 identified articles, 42 articles were extracted and analyzed in depth based on established inclusion and exclusion criteria. The review results show that the shadow economy consistently correlates negatively with tax revenue, with varying magnitudes of influence based on country characteristics, economic structure, and taxation systems. Determinant factors that strengthen this relationship include high tax burdens, regulatory complexity, corruption, low institutional effectiveness, and the level of public tax awareness. This study also identifies several effective tax policy mechanisms in mitigating the negative effects of the shadow economy, including digitalization of tax administration, enhancing the capacity of tax authority institutions, and voluntary compliance programs. The theoretical and practical implications of these findings provide a comprehensive information foundation for policymakers in designing optimal tax revenue strategies amid informal economy challenges.

Identification of direct reporting of individual taxpayers to the tax service office using the Ishikawa diagram

Wed, 16 Apr 2025 00:00:00 +0000

Filing the Individual Taxpayer’s Annual Tax Return (WPOP SPT) is designed to be a straightforward process that can be completed independently using an application. However, many taxpayers face difficulties in calculating, filling out, and submitting their Individual Taxpayer Annual Tax Return for Personal Income Tax (SPT PPh OP), leading to a high volume of in-person visit queues to Tax Offices (KPP). This study aims to identify the root causes of these challenges and their impact on tax administration, particularly the increasing service demands and long queues at tax offices. The research was conducted through observations and interviews with taxpayers (WP) at the Pondok Aren Tax Office. A fishbone (Ishikawa) diagram was used to analyze the causes of these issues, while a literature review applied the MECE (Mutually Exclusive, Collectively Exhaustive) method and the 5M framework (Man, Materials, Machines, Methods, Money), supplemented by considerations of information and time factors. The findings indicate that the primary issue lies in the human factor (Man), specifically, taxpayers’ limited knowledge and understanding of tax procedures. Other technical factors are difficulties in operating the application (Machines) and the completeness of report preparation support (Materials). Prior research frequently recommends that tax officers improve taxpayers’ education and promote the use of digital tax reporting platforms. Tax officers remain essential in providing education and support. Additionally, tax volunteers can play a crucial role in assisting taxpayers, particularly during peak reporting periods. To improve service quality, tax officers should receive training in customer service excellence, while tax offices must enhance computer infrastructure and internet capacity to prevent system disruptions.

The influence of institutional ownership, leverage and profitability on tax avoidance: Empirical study on mining sector companies

Marcho Agusta, Feber Sormin — Thu, 15 May 2025 00:00:00 +0000

This study aims to analyze and examine the influence of institutional ownership, leverage, and profitability on tax avoidance in mining sector companies listed on the Indonesia Stock Exchange (IDX) during the 2020-2023 period. Tax avoidance is a legal strategy used by companies to minimize tax burdens, yet it often raises concerns as it may reduce the company’s tax contributions to the state. The research employs a quantitative approach with secondary data collected from annual financial reports. The sample was selected using a purposive sampling technique, resulting in 23 companies from a population of 63, with a total of 92 observations. Data were analyzed using mmultiple linear regression with the assistance of SPSS software. The result indicate that leverage has a positive and significant effect on tax avoidance, suggesting that companies with higher debt ratios tend to engage more in tax avoidance. In contrast, institutional ownership and profitability have a negative effect on tax avoidance, implying that companies with higher institutional ownership and profitability levels re less likely to avoid taxes. These findings provide insights for management, investors, and tax authorities regrading corporate behavior in managing tax obligations, and emphasize the importance of enhanced oversight of tax avoidance practices.