Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia

Research Article

Analysis Of Determinants Affecting Gross Domestic Product (GDP) And State Revenue and Its Implications on Tax Ratio

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  • @INPROCEEDINGS{10.4108/eai.16-4-2022.2319714,
        author={Usmansyah Usmansyah and Faisal Santiago and Sri Sungkowati},
        title={Analysis Of Determinants Affecting Gross Domestic Product (GDP) And State Revenue and Its Implications on Tax Ratio},
        proceedings={Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2022},
        month={8},
        keywords={gross domestic product (gdp) state revenue tax ratio},
        doi={10.4108/eai.16-4-2022.2319714}
    }
    
  • Usmansyah Usmansyah
    Faisal Santiago
    Sri Sungkowati
    Year: 2022
    Analysis Of Determinants Affecting Gross Domestic Product (GDP) And State Revenue and Its Implications on Tax Ratio
    ICLSSEE
    EAI
    DOI: 10.4108/eai.16-4-2022.2319714
Usmansyah Usmansyah1,*, Faisal Santiago1, Sri Sungkowati1
  • 1: Universitas Borobudur, Jakarta, Indonesia
*Contact email: usman_syah@yahoo.com

Abstract

Tax ratio is an interesting topic to discuss. There are two major determinants which will be used to calculate tax ratio, that are Gross Domestic Product and Tax Revenue. Gross Domestic Product (GDP) is influenced by investment, public consumption, and economic growth. Tax revenue is influenced by taxpayer compliance and tax administration system, and economic growth. In order to know how far GDP and Tax Revenue affect Tax Ratio, an analysis was carried out based on available data and using multiple linear regression and test of multicollinearity to conclude the relationship between GDP and State Revenue to Tax Ratio. The more State Revenue increase, the more tax ratio increase. Its consequence is to increase state revenues, especially tax revenues, taxation policies must be formulated that refer to taxpayer compliance, the taxation system, including tax intensification and extensification measures, economic growth to increase GDP and ultimately increase tax ratio.