You are on page 1of 1

Evi Nur Isnaini (2015-002) Writing Final VA

High Taxes hinder Indonesia from becoming Productive


Indonesian taxation is an enforceable contribution exposed on all Indonesian
citizens. Indonesia has a stratification taxation including income tax, local tax, and
central government text. For corporation tax, companies in Indonesia are taxes at a rate
25%, for both domestic and international sourced income. High luxury taxes have
inhibited the expansion industrial productivity in Indonesia thus effecting on the
Indonesian economic condition.

Luxury taxes for companies one of the challenges in creating regulations that
meet the needs of the community is the minimal participation of the stakeholders. The
government also needs to spur growth and equity of the economy to encourage the
productive sector. High taxes for industrial sectors in Indonesia, led to productivity
healing of an industry sector itself. When an industry generates an outcome of their
product, they will provide a towering sale rate to cover the extent of taxes they have to
pay. When the product they produce has a very high purchase price. buyers may not be
interested in buying their products. Whereas, the industrial sectors that are unable to
meet the tax extension, they will continue to be hampered to produce their products
and will make their business sector passive.

A good tax policy will help determine the course of the economy in the country.
Efficient taxation is implemented in a way that can help more equitable revenue
sharing, can help to provide a boost in economic growth rates and strengthen the
budget expenditure policy implemented by the administrative system. Described is high
tariffs will reduce investment that automatically suppresses economic growth and the
impact of shrinking tax revenue. The relatively small tariff will have an inverse effect,
and the country's growth will grow.

From all aspects concerned, the government should pay more attention to the tax
revenue gap with the still-growing industries. When the taxes they have to pay are very
high, while their industry revenue is below the average profit they should get. It is
clearly that it will hinder the productivity of their industry is disrupted.

334 words Page 1

You might also like