Analysis of the correlation between ICT and Tax Revenue in Indonesia
Article Sidebar
Main Article Content
Abstract
This research aims to analyze the impact of ICT utilization in tax collection at the national, provincial and district/city levels. This research focuses on how far the impact of ICT utilization in increasing tax revenue. Based on that, this research recognizes three econometric models, namely central, provincial and district/city tax revenue models which analyzed through Fixed Effect Model (FEM) and Random Effect Model (REM) then selected by Hausman test. The results indicate that on average, an increase in SMEs using ICT with IP-ICT level 5, will increase the central tax ratio, then an increase in motorized vehicles whose owners use ICT with IP-ICT level 5, will increase the provincial tax ratio, an increase in Gross Regional Domestic Product of the hotel and/or restaurant sector whose owners/managers use the ICT with IP-ICT level 5, will increase district/city tax ratio. The implication of this research, Central Government needs to socialize the use of ICT-based tax applications, Provincial Government should coordinate with local police in disseminating the use of online tax applications for motor vehicle tax, District/City Governments periodically socialize the obligation to use the tapping box or online cash register machine.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who submit a manuscript understand that if the manuscript is accepted for publication, the copyright of the article shall be assigned to Jurnal Ekonomi Modernisasi (JEM).
References
Adegboye, A., Uwuigbe, U., Ojeka, S., Uwuigbe, O., Dahunsi, O., & Adegboye, K. (2022). Driving information communication technology for tax revenue mobilization in Sub-Saharan Africa. Telecommunications Policy, 46(7), 102329. https://doi.org/10.1016/J.TELPOL.2022.102329
Adejumo, O., Okoruwa, V., Abass, A., & Salman, K. (2020). Post-harvest technology change in cassava processing: A choice paradigm. Scientific African, 7, e00276. https://doi.org/10.1016/j.sciaf.2020.e00276
Agustina, N., & Pramana, S. (2019). The Impact of Development and Government Expenditure for Information and Communication Technology on Indonesian Economic Growth. Korea Distribution Science Association, 9(4), 5–13. https://doi.org/10.13106/jbees.2019.vol9.no4.5
Ali, M., Shifa, A. B., Shimeles, A., & Woldeyes, F. (2017). Building Fiscal Capacity: The Role of ICT (Working Paper Series).
Allahverdi, M., Alagoz, A., & Ortakarpuz, M. (2017). The effect of e-taxation system on tax revenues and cost: Turkey case. European Journal of Social Sciences, 9, 100–150.
Andriany, D., & Qibthhiyyah, R. M. (2018). Analisis Hubungan antara Infrastruktur Jalan dan Tax Capacity: Studi Kasus Indonesia. Jurnal Ekonomi Dan Pembangunan Indonesia, Special Issue, 33-50. https://doi.org/10.21002/jepi.v0i0.974
Arnold, J. M., Brys, B., Heady, C., Johansson, A., Schwellnus, C., & Vartia, L. (2011). Tax policy for economic recovery and growth. The Economic Journal, 121(550), 59–80. https://doi.org/10.1111/j.1468-0297.2010.02415.x
Bahl, R. (1971). A Regression Approach to Tax Effort and Tax Ratio Analysis. In IMF Staff Papers (Vol. 18, Issue 3). International Monetary Fund. https://doi.org/10.5089/9781451969276.024.A004
Bird, R. M., Martinez-Vazquez, J., And Martinez-Vazquez, J., & Torgler, B. (2008). Tax Effort in Developing Countries and High Income Countries: The Impact of Corruption, Voice and Accountability. Economic Analysis & Policy, 38(1), 55–71.
Brun, J.-F., Chambas, G., Tapsoba, J., & Wandaogo, A.-A. (2020). Are ICT’s boosting tax revenues? Evidence from developing countries (No. 02979897; CERDI Working Papers).
Chen, Y. K. (2012). The Progressivity Of The Malaysian Personal Income Tax System. Kajian Malaysia: Journal of Malaysian Studies, 30(2), 27–43.
Clotfelter, C. T. (1983). Tax Evasion and Tax Rates: An Analysis of Individual Returns. The Review of Economics and Statistics, 65(3), 373. https://doi.org/10.2307/1924181
Dioda, L. (2012). Structural Determinants of Tax Revenue in Latin America And The Caribbean 1990-2009. Comisión Económica para América Latina y el Caribe.
Estri, R., & Djamaluddin, S. (2019). Does the Progressive Personal Income Tax Drives Tax Evasion in Indonesia? Proceeding UII-ICABE, 23–32.
Fatimah, F. (2020). Analisis mengapa Tax Ratio menurun. Pajakku. https://www.pajakku.com/read/5f689d242712877582239006/Analisis-mengapa-Tax-Ratio-menurun
Fauzia, M., & Djumena, E. (2018, October). IMF: Indonesia Seharunya Punya “Tax Ratio†15 Persen. Kompas.
Gruber, J., & Saez, E. (2002). The elasticity of taxable income: Evidence and implications. Journal of Public Economics, 84(1), 1–32. https://doi.org/10.1016/S0047-2727(01)00085-8
Hanrahan, D. (2021). Digitalization as a Determinant of Tax Revenues in OECD Countries: A Static and Dynamic Panel Data Analysis. Athens Journal of Business & Economics, 7(4), 321–348. https://doi.org/10.30958/ajbe.7-4-2
Jawapos. (2019, March). Tapping Box Pengaruhi Peningkatan PAD Kota Batam. Jawapos.
Jawapos. (2021, August). Ribuan Warga Bayar Pajak Pakai Aplikasi Samsat Digital Nasional. Jawapos.
Koyuncu, C., & Ünver, M. (2017). Information and communication technologies (ICTs) and corruption level: empirical evidence from panel data analysis. The Journal of International Scientific Researches, 2(6), 1–10. https://doi.org//10.23834/isrjournal.322734
Le, T. M., Moreno-Dodson, B., & Bayraktar, N. (2012). Tax Capacity and Tax Effort: Extended Cross-Country Analysis from 1994 to 2009. In World Bank Policy Research Working Paper (Issue 6252).
Leuthold, J. H. (1991). Tax shares in developing economies: A panel study. Journal of Development Economics, 35(1), 173–185. https://doi.org/10.1016/0304-3878(91)90072-4
Marliana, R., Suherman, M., & Almunawwaroh, M. (2017). Pengaruh Penerapan E-Filing Terhadap Kepatuhan Wajib Pajak Dalam Penyampaian Surat Pemberitahuan (Spt) Tahunan Pada Kantor Pelayanan Pajak Pratama Kota Tasikmalaya. Media Riset Akuntansi, Auditing & Informasi, 15(1), 49–64. https://doi.org/10.25105/mraai.v15i1.1649
Mascagni, G., Mengistu, A. T., & Woldeyes, F. B. (2021). Can ICTs increase tax compliance? Evidence on taxpayer responses to technological innovation in Ethiopia. Journal of Economic Behavior & Organization, 189, 172–193. https://doi.org/10.1016/j.jebo.2021.06.007
Masunga, F. J., Mapesa, H. J., & Nyalle, M. A. (2020). Quality of e-tax system and its effect on tax compliance (evidence from large taxpayers in Tanzania). International Journal of Commerce and Finance, 6(2), 145–158.
Mkandawire, T. (2010). On tax efforts and colonial heritage in Africa. The Journal of Development Studies, 46(10), 1647–1669. https://doi.org/10.1080/00220388.2010.500660
Mukuwa, V., & Phiri, J. (2019). The Effects of E-Services on Revenue Collection and Tax Compliance among SMEs in Developing Countries: A Case Study of Zambia. Open Journal of Social Sciences, 8(1), 98–108. https://doi.org/10.4236/jss.2020.81008
Night, S., & Bananuka, J. (2020). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25(49), 73–88. https://doi.org/10.1108/JEFAS-07-2018-0066/FULL/HTML
OECD. (2017, July). Special feature: Electronic services in tax administration. OECD ILibrary. https://doi.org/10.1787/9789264278943-4-EN
Otekunrin, A. O., Nwanji, T. I., Eluyela, F. D., Inegbedion, H., & Eleda, T. (2021). E-tax system effectiveness in reducing tax evasion in Nigeria. Problems and Perspectives in Management. Problems and Perspectives in Management, 19(4), 175–185. https://doi.org/10.21511/ppm.19(4).2021.15
Piancastelli, M. (2001). Measuring the Tax Effort of Developed and Developing Countries: Cross Country Panel Data Analysis - 1985/95. In IPEA Working Paper (Issue 818).
Piancastelli, M., & Thirlwall, A. P. (2021). The Determinants of Tax Revenue and Tax Effort in Developed and Developing Countries: Theory and New Evidence 1996-2015. Nova Economia, 30(3), 871–892. https://doi.org/10.1590/0103-6351/5788
RodrÃguez, S. P. (2018). The dynamic effects of public expenditure shocks in the United States. Journal of Macroeconomics, 56, 340–360. https://doi.org/10.1016/J.JMACRO.2018.04.005
Saragih, A. H., Hendrawan, A., & Susilawati, N. (2019). Implementasi Electronic SAMSAT untuk Peningkatan Kemudahan Administrasi dalam Pemungutan Pajak Kendaraan Bermotor (Studi pada Provinsi Bali). Jurnal ASET (Akuntansi Riset), 11(1), 85–94. https://doi.org/10.17509/jaset.v11i1.16420
Sen Gupta, A. (2007). Determinants of Tax Revenue Efforts in Developing Countries. In IMF Working Paper (Vol. 07, Issue 184).
Shin, K. (1969). International Difference in Tax Ratio. The Review of Economics and Statistics, 51(2), 220. https://doi.org/10.2307/1926733
Sillamaa, M.-A., & Veall, M. R. (2001). The effect of marginal tax rates on taxable income: a panel study of the 1988 tax flattening in Canada. Journal of Public Economics, 80(3), 341–356. https://doi.org/10.1016/S0047-2727(00)00128-6
Skinner, J., & Slemrod, J. (1985). An economic perspective on tax evasion. National Tax Journal, 38(3), 345–353. https://doi.org/10.1086/NTJ41792031
Wasao, D. (2014). The Effect of Online Tax System on Tax Compliance Among Small Taxpayer in East of Nairobi Tax District. University of Nairobi.
Yoshino, N., & Abidhadjaev, U. (2016). Impact of Infrastructure Investment on Tax: Estimating Spillover Effects of the Kyushu High-Speed Rail Line in Japan on Regional Tax Revenue (ADBI Working Paper Series).
Yoshino, N., & Hoa, T. T. (2020). Effects of infrastructure projects on government revenue: The case of expressway projects in the Northern midland and mountainous Area of Viet Nam (ADBI Working Paper Series).