THE ROLE OF TAX EDUCATION AND SOCIALIZATION IN THE EVALUATION OF VALUE ADDED TAX (VAT) POLICY
DOI:
https://doi.org/10.66303/4bvmjx13Keywords:
value added tax, consumption, fiscal policy, economic growthAbstract
Purpose: This study aims to evaluate the Value Added Tax (VAT) policy and its relevance to Indonesia's economic growth. The analysis focuses on policy changes and their impact on state revenues, household consumption, businesses, and macroeconomic indicators.
Methods: The method used is a literature review with a descriptive-analytical approach, drawing on scientific journals, official reports, and the latest tax regulations.
Results: The results indicate that VAT reform through tariff adjustments, tax base expansion, and administrative digitization has successfully increased fiscal revenues. However, this policy has also triggered price pressures, decreased purchasing power, and uneven impacts across income groups and business sectors, particularly MSMEs. The findings also indicate that the contribution of VAT to economic growth is not linear and is strongly influenced by policy design, macroeconomic conditions, and the effectiveness of its implementation.
Conclusion: The effectiveness of VAT policy requires a balance between fiscal objectives, price stability, and protection of vulnerable groups.
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