Tax Administration Reform and Fiscal Adjustment: The Case of Indonesia (2001-07)

By John D Brondolo, Frank Bosch, Eric Le Borgne, Carlos Silvani

May 1, 2008

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Format: Chicago

John D Brondolo, Frank Bosch, Eric Le Borgne, and Carlos Silvani. Tax Administration Reform and Fiscal Adjustment: The Case of Indonesia (2001-07), (USA: International Monetary Fund, 2008) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Tax administration reforms can play an important role in fiscal adjustment. This role is examined by reviewing Indonesia's tax reform cum fiscal adjustment experience since 2001. The paper describes Indonesia's fiscal adjustment strategy, its tax administration reforms, and assesses the impact of these reforms on fiscal adjustment. Evidence suggests tax administration improvements had a strong positive impact on the tax yield and a positive effect on the investment climate. Lessons are presented for designing tax administration reforms within the context of a fiscal adjustment program and reform priorities are identified for Indonesia's ongoing efforts to strengthen tax administration.

Subject: Fiscal consolidation, Revenue administration, Tax administration core functions, Tax collection, Value-added tax

Keywords: Administration reform, Reform strategy, Sales tax, Tax administration, WP

Publication Details

Pages:

70
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/129
Stock No:

WPIEA2008129
ISBN:

9781451869880
ISSN:

1018-5941

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