Bimo Wijayanto - Academia.edu (original) (raw)
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Papers by Bimo Wijayanto
Following the 1980's oil price plunge, Indonesian economic growth fell sharply as a consequence o... more Following the 1980's oil price plunge, Indonesian economic growth fell sharply as a consequence of its heavy reliance on oil and gas exports. This drove the long overdue need to reform the tax law to replace an old and outdated colonial tax. This was the beginning of radical move to a self-assessment and simplification of the tax system to increase future revenue streams and to repay an increasing foreign debt. Since 1983, the tax policy has undergone ongoing reforms to improve effectiveness, efficiency, neutrality, vertical and horizontal equity with the final aim to encourage voluntary compliance to increase government revenue. Somehow, after years of reform, the actual tax performance is still far from what was initially expected. Among the ASEAN countries, Indonesia currently experiences the lowest tax ratio to GDP. Due to this low tax ratio, the total contribution of income tax (Indonesia's main tax revenue) is smaller than other ASEAN countries Indonesian income tax law amendment typically is a long process with intensive discussion between the parliament and the government. It was observed that the government mainly used macro-based analysis. This analysis will be more cost effective and suitable when the primary concern is the aggregate-impact. However, several study have endorsed microsimulation model as the policy tool to address issue related to the need for detail impact of the policy scenarios. This model captures the interaction between the individual in the tax system and the assessment of the relational impact with other welfare program. This has led to the initial motivation of this thesis, the need for the development of a sound microsimulation model for the purpose of personal income tax (PIT) policy analysis.
Economics and Finance in Indonesia
Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the... more Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the old colonial tax arrangements, reduce income dependency from oil and gas, decrease the government's foreign debt and maintain its fiscal sustainability. Nevertheless, after 25 years of reform, actual Indonesian tax performance is still far from what might have been expected as Indonesia have one of the lowest total tax ratios among the ASEAN countries. This research show that the most recent changes put in place may have reduced potential tax revenue from personal income but an increase in the compliance rate.
Following the 1980's oil price plunge, Indonesian economic growth fell sharply as a consequence o... more Following the 1980's oil price plunge, Indonesian economic growth fell sharply as a consequence of its heavy reliance on oil and gas exports. This drove the long overdue need to reform the tax law to replace an old and outdated colonial tax. This was the beginning of radical move to a self-assessment and simplification of the tax system to increase future revenue streams and to repay an increasing foreign debt. Since 1983, the tax policy has undergone ongoing reforms to improve effectiveness, efficiency, neutrality, vertical and horizontal equity with the final aim to encourage voluntary compliance to increase government revenue. Somehow, after years of reform, the actual tax performance is still far from what was initially expected. Among the ASEAN countries, Indonesia currently experiences the lowest tax ratio to GDP. Due to this low tax ratio, the total contribution of income tax (Indonesia's main tax revenue) is smaller than other ASEAN countries Indonesian income tax law amendment typically is a long process with intensive discussion between the parliament and the government. It was observed that the government mainly used macro-based analysis. This analysis will be more cost effective and suitable when the primary concern is the aggregate-impact. However, several study have endorsed microsimulation model as the policy tool to address issue related to the need for detail impact of the policy scenarios. This model captures the interaction between the individual in the tax system and the assessment of the relational impact with other welfare program. This has led to the initial motivation of this thesis, the need for the development of a sound microsimulation model for the purpose of personal income tax (PIT) policy analysis.
Economics and Finance in Indonesia
Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the... more Since 1983, Indonesian tax policy has been the subject of ongoing reforms in order to replace the old colonial tax arrangements, reduce income dependency from oil and gas, decrease the government's foreign debt and maintain its fiscal sustainability. Nevertheless, after 25 years of reform, actual Indonesian tax performance is still far from what might have been expected as Indonesia have one of the lowest total tax ratios among the ASEAN countries. This research show that the most recent changes put in place may have reduced potential tax revenue from personal income but an increase in the compliance rate.