The effectiveness of VAT and GST implementation in enhancing tax revenue: A comparative analysis

Suparna Wijaya; Noviyantini Nasywa Syafitri; Michele Tri Ananda; Syifa Listi Febriani; Najwa Nabila Adli; Naura Raihana

doi:10.54957/jurnalku.v5i1.1434

Penulis

Suparna Wijaya Universitas Pembangunan Nasional Veteran Jakarta
Noviyantini Nasywa Syafitri Universitas Pembangunan Nasional Veteran Jakarta
Michele Tri Ananda Universitas Pembangunan Nasional Veteran Jakarta
Syifa Listi Febriani Universitas Pembangunan Nasional Veteran Jakarta
Najwa Nabila Adli Universitas Pembangunan Nasional Veteran Jakarta
Naura Raihana Universitas Pembangunan Nasional Veteran Jakarta

DOI:

https://doi.org/10.54957/jurnalku.v5i1.1434

Kata Kunci:

Economic Growth, Fiscal Policy, Goods and Services Tax, Tax Revenue, Value-Added Tax

Abstrak

This article evaluates the effectiveness of Value-Added Tax (VAT) and Goods and Services Tax (GST) implementation in enhancing national tax revenue. Through a systematic review and analysis of research studies from various countries that have adopted VAT/GST systems, this study demonstrates that both tax mechanisms significantly contribute to increasing tax revenue by expanding the tax base and reducing potential tax leakage. While their effectiveness varies across countries based on implemented policies, key factors such as taxpayer compliance rates, administrative complexity, and technological utilization in tax collection substantially impact implementation success. The findings emphasize the importance of well-designed policy formulation tailored to local economic contexts to ensure that VAT and GST can optimally contribute to national revenue. This research provides valuable insights for policymakers considering tax system reforms aimed at improving fiscal sustainability.

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