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

Amir, Hidayat, Asafu-Adjaye, John and Ducpham, Tien (2013) The impact of the Indonesian income tax reform: A CGE analysis. Economic Modelling, 31 1: 492-501. doi:10.1016/j.econmod.2012.12.018


Author Amir, Hidayat
Asafu-Adjaye, John
Ducpham, Tien
Title The impact of the Indonesian income tax reform: A CGE analysis
Journal name Economic Modelling   Check publisher's open access policy
ISSN 0264-9993
1873-6122
Publication date 2013-03-01
Year available 2013
Sub-type Article (original research)
DOI 10.1016/j.econmod.2012.12.018
Volume 31
Issue 1
Start page 492
End page 501
Total pages 10
Place of publication Amsterdam, The Netherlands
Publisher Elsevier
Collection year 2014
Language eng
Formatted abstract
This study evaluates the impacts of Indonesia's recent income tax reforms on key macroeconomic variables, as well as the impacts on poverty and income distribution. It was found that the reductions in personal income tax and corporate income tax increase economic growth under a balanced budget assumption. The policy reforms also lead to a small reduction in the incidence of poverty. However, the policies also lead to an increase in income inequality because the tax cut is more beneficial to households in the highest income categories. It is recommended that future tax cuts should target the urban and rural poor.
Keyword Indonesia
Tax reform
Economic growth
Poverty
CGE analysis
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2014 Collection
UQ Business School Publications
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 4 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 4 times in Scopus Article | Citations
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