In 2012, Indonesia
'
s tax ratio is only 11.2% of GDP. This igure is far lower than the ratio of the ASEAN
counties, even compared with China
,
s state though. Symptoms of the above begs the question, how the
actual tax rate developments in Indonesia? Factors-factors that inluence the growth rate of tax? Is the
increase in the tax ratio needs to worry about. Using descriptive analysis shows that the end of the 1960s,
Indonesia tax ratio is only 6% of GDP and only in the late 1980s was able to reach 10% of GDP. Thus,
during the period 1960 to 1980, Indonesia tax ratio grew only 2% / year, much lower than the rate of
economic growth in the same period. Its a bit worrying for the past two decades the growth of tax ratio to
stagnate, as it only increased to 12% of GDP. While the estimation results using an econometric model
suggests that economic growth is actually very A potential for raising the taxes and the Indonesian context,
if the tax rate is 6%, then the increase in the ratio of taxes it would stimulate economic growth. Because it
Is a progressive tax policy in Indonesia do not have to worry abou
