Jurnal Ekonomi Perjuangan (JUMPER)
Vol. 6 No. 2 (2024): Jurnal Ekonomi Perjuangan (JUMPER)

The IMPACT OF 12% TAX INCREASE ON UNEMPLOYMENT RATE AND ECONOMIC GROWTH: A MACROECONOMIC ANALYSIS OF INDONESIA

Maulidya, Rahmanita (Unknown)
Asriati, Nuraini (Unknown)



Article Info

Publish Date
24 Dec 2024

Abstract

The 12% increase in the Value Added Tax (VAT) rate in Indonesia raises concerns about its impact on the unemployment rate and economic growth. This article analyzes the implications of this fiscal policy using a macroeconomic approach and systematic literature review method. The process of coding and visualizing the research results uses Atlas.ti software. The findings suggest that the tax increase has the potential to burden firms, which could lead to a reduction in labor force and increase unemployment, especially in sectors that depend on people's purchasing power. In this situation, higher inflation could erode purchasing power, reduce demand for goods and services, and slow overall economic growth. This research suggests that an increase in unemployment will have a wider negative impact on the economy, as the informal sector tends to be more vulnerable to these fluctuations. Keywords: Value Added Tax (VAT), Increase in VAT rate, Unemployment, Economic growth, Macroeconomic approach.

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Journal Info

Abbrev

JUMPER

Publisher

Subject

Economics, Econometrics & Finance

Description

Jumper aim is to promote scientific articles that focus on accounting and management. Manuscript articles can come from researchers, academics, practitioners, lecturers, students and other observers who are interested in research in the field of accounting or management. JUMPER invites manuscripts ...