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Impact of Policies and Macroeconomic Variables on Tax Revenue and Effective Tax Rate of Infrastructure, Utility, and Transportation Sector Companies Listed in Indonesia Stock Exchange

Author

Listed:
  • Mursal Harahap

    (Directorate General of Taxation, Ministry of Finance, Indonesia)

  • Bonar M. Sinaga

    (Faculty of Economics and Management, Bogor Agricultural University, Indonesia)

  • Adler H. Manurung

    (Graduate Program, Bina Nusantara University, Indonesia,)

  • Tubagus Nur Ahmad Maulana

    (Graduate Program, Business School, Bogor Agricultural University, Indonesia)

Abstract

Taxes are the major source of state revenue for financing government expenditures. Tax revenues are influenced by government policies and macroeconomic variables. This study aims to analyze the impact of macroeconomic and policy changes on tax revenue and effective tax rate (ETR). Panel data was utilized for companies in the infrastructure, utilities and transportation sector for the period 2010-2015. Analysis was carried out using a simultaneous equations model and estimated using the Two-Stage Least Squares (2SLS). Seidel's method was selected to analyze the impact simulation. It was found that there was a greater inflationary impact on tax revenue and effective tax rate (ETR), causing them to increase, followed by tax rates, GDP, exchange rates and interest rates of the Bank of Indonesia (BI).

Suggested Citation

  • Mursal Harahap & Bonar M. Sinaga & Adler H. Manurung & Tubagus Nur Ahmad Maulana, 2018. "Impact of Policies and Macroeconomic Variables on Tax Revenue and Effective Tax Rate of Infrastructure, Utility, and Transportation Sector Companies Listed in Indonesia Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 95-104.
    • Handle: RePEc:eco:journ1:2018-03-12
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    References listed on IDEAS

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    Cited by:

    1. Sinem Koçak, 2021. "Is Exchange Rate Volatility An Important Determinant Of Tax Revenues? Evidence From Turkey," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 24(81), pages 33-49, September.

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    More about this item

    Keywords

    Effective Tax Rate; Macroeconomic variable; Policy Impact;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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