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

Author/Editor:

Carlos Silvani ; Eric Le Borgne ; Frank Bosch ; John Brondolo

Publication Date:

May 1, 2008

Electronic Access:

Free Full text (PDF file size is 629 KB).Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Working Paper No. 08/129

Subject(s):

English

Publication Date:

May 1, 2008

ISBN/ISSN:

9781451869880/1018-5941

Stock No:

WPIEA2008129

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

70

Please address any questions about this title to publications@imf.org