Potential Implementation of Goods and Services Tax as a Substitute of Value Added Tax in Indonesia

Naufalia Dinar Primacita, Khoirunurrofik

2018

Abstract

This research aims to analyze the feasibility of implementing a goods and services tax as a substitute for value added tax in Indonesia during the period 2005 to 2015. It also estimates the potential revenues made at both central and local government levels. This study uses a panel data method prepared through descriptive and econometric analysis. The unit of analysis is between provinces in Indonesia, with the findings correlated to Stiglitz’s theory. The findings show that goods and services tax (GST) has the potential to be feasibly applied in Indonesia as an alternative to value added tax (VAT), and that it would provide a greater potential tax revenue than VAT. Consequently, if GST were to be implemented at a regional level, interprovincial equity could be achieved by empowering fiscal equity through a local surcharge tax system.

Paper Citation

in Harvard Style

Dinar Primacita N. and Khoirunurrofik. (2018). Potential Implementation of Goods and Services Tax as a Substitute of Value Added Tax in Indonesia.In Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC, ISBN 978-989-758-387-2, pages 102-111. DOI: 10.5220/0008437301020111

in Bibtex Style

@conference{seabc18,
author={Naufalia Dinar Primacita and Khoirunurrofik},
title={Potential Implementation of Goods and Services Tax as a Substitute of Value Added Tax in Indonesia},
booktitle={Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,},
year={2018},
pages={102-111},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008437301020111},
isbn={978-989-758-387-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference - Volume 1: SEABC,
TI - Potential Implementation of Goods and Services Tax as a Substitute of Value Added Tax in Indonesia
SN - 978-989-758-387-2
AU - Dinar Primacita N.
AU - Khoirunurrofik.
PY - 2018
SP - 102
EP - 111
DO - 10.5220/0008437301020111