POTENSI PENERIMAAN PAJAK DARI UNDERGROUND ECONOMY DI INDONESIA

underground economy activities in Indonesia

Muhammad Nizar and Kuntarto Purnomo

MPRA Paper from University Library of Munich, Germany

Abstract: This study aims to estimate the size of underground economy activities in Indonesia. Based on the results of these estimates, further calculated the potential tax loss due to the existence of underground economy activities. This study was conducted using quantitative approaches, namely currency demand model which is estimated by ordinary least square (OLS) method. By using time series (quarterly) data period 2000 – 2009 we found that the size of underground economy is about Rp164, 4 trillion per year on average, equivalent to 6% of GDP. Meanwhile, the potential tax loss due to the activity estimated at Rp20,6 trillion on average per year, or approximately 0.69% of GDP.

Keywords: economic growth; official economy; underground economy; tax rate (search for similar items in EconPapers)
JEL-codes: C51 E2 E26 E47 E5 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

Published in Kajian Ekonomi dan Keuangan 2.15(2011): pp. 1-35

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65608

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