The Implementation of Tax Expenditures in Indonesian Tax Law: Evaluating Impacts on MSMEs and Economic Justice

Muhammad Rudy Aqbar; Annisa Hafizhah; Ari Wijayanto

Authors

Muhammad Rudy Aqbar Universitas Gadjah Mada
Annisa Hafizhah Universitas Sumatera Utara
Ari Wijayanto Universitas Gadjah Mada

Keywords:

Economic Justice, Fiscal Policy, Human Rights, MSMEs, Tax Expenditures

Abstract

Tax expenditure policies, such as the 0.5% Final Income Tax rate stipulated by Government Regulation No. 23 of 2018, aim to foster the growth of Micro, Small, and Medium Enterprises (MSMEs) by reducing their tax burdens. These policies have shown positive impacts, particularly in improving tax compliance and alleviating the fiscal burden of MSMEs. However, challenges remain, including low tax literacy, bureaucratic complexities, and geographical disparities that hinder smaller and remote MSMEs from accessing these benefits. This paper examines how such policies align with human rights principles, such as the right to decent work and equitable economic access, while offering recommendations to ensure more inclusive implementation. By enhancing tax literacy, simplifying bureaucracy, and extending incentives to underserved MSMEs, tax expenditure policies can serve as an effective instrument to promote economic justice and sustainable development.

Downloads

Download data is not yet available.

References

Bandyopadhyay, S & Esteban, J. (2007). Redistributive Policies and Tax Expenditures. LSE STICERD Paper No. DARP 95.

Cornelia, Y., & Wijaya, S. (2022). Perpajakan UMKM: Isu Pajak Berganda. Jurnal Info Artha, 6(1), 76-88.

Darussalam & Kristiaji, B. Bawono. (2014). Tax Expenditures Atas Pajak Penghasilan: Rekomendasi Bagi Indonesia, Tax Law Design and Policy Series No 0814 DDTC Working Paper. https://ddtc.co.id/en/publication/tax-expenditure-atas-pajak-penghasilan-rekomendasi-bagi-indonesia_276

DDTC Fiscal Research & Advisory. (2022). Policy Note. Tinjauan dan Rekomendasi Kebijakan atas Pelaksanaan Kewajiban Pajak UMKM dalam Ekosistem Digital: Perspektif dan Suara dari Pelaku UMKM. https://ddtc.co.id/uploads/pdf/DDTC-Policy-Note_Tinjauan-dan-Rekomendasi-Kebijakan-atas-Pelaksanaan-Kewajiban-Pajak-UMKM-dalam-Ekosistem-Digital_Perspektif-dan-Suara-dari-Pelaku-UMKM.pdf

DDTC News. (2020). Apa itu Tax Expenditure? https://news.ddtc.co.id/literasi/kamus/20535/apa-itu-tax-expenditure

DDTC News. (2024). Tarif Pajak Rendah dan Program BDS Bisa Bangun Kepatuhan Sukarela UMKM. https://news.ddtc.co.id/berita/nasional/1806184/tarif-pajak-rendah-dan-program-bds-bisa-bangun-kepatuhan-sukarela-umkm.

Directorate General of Taxation of the Ministry of Finance of the Republic of Indonesia. (2024). Mengenal Tax Expenditure: Belanja Perpajakan yang Menguntungkan. https://pajak.go.id/id/artikel/mengenal-tax-expenditure-belanja-perpajakan-yang-menguntungkan-wajib-pajak

Fauziah, U., & Tidajoh, B.E. (2018). Perencanaan Pajak untuk Usaha Mikro, Kecil, dan Menengah. Substansi, 2(2), 199-210.

Fiscal Policy Agency of the Ministry of Finance of the Republic of Indonesia. (2018). Tax Expenditure Report. https://fiskal.kemenkeu.go.id/files/ter/file/TER-2018-Updated.pdf

Fiscal Policy Agency of the Ministry of Finance of the Republic of Indonesia. (2018). Tax Expenditure: Strategi Pemerintah untuk Memajukan Perekonomian. https://fiskal.kemenkeu.go.id/baca/2018/11/15/172253709336730-tax-expenditure-strategi-pemerintah-untuk-memajukan-perekonomian

Fiscal Policy Agency of the Ministry of Finance of the Republic of Indonesia. (2022). Tax Expenditure Report. https://fiskal.kemenkeu.go.id/files/ter/file/1702603064_ter_buku_1.pdf

Kusumawardani, Pande Putu Oka. (2024). Tax Expenditure Supports the Stabilization and Distribution Function of the State Budget. 2nd International Tax Forum, Jakarta, 25 September 2024.

Prasetyo, A., & Rahmawati, D. (2021). Pentingnya Sosialisasi Insentif Pajak bagi UMKM di Indonesia. Jurnal Ilmu Ekonomi dan Manajemen, 10(2), 101-112.

Putri, D. R., & Junaidi, A. (2023). Pengaruh Literasi Perpajakan, Penerapan E-Filing, Sanksi Perpajakan dan Pengetahuan Perpajakan Terhadap Kepatuhan Wajib Pajak Orang Pribadi. Jurnal Akuntansi, 12(2), 137–154.

Rachmawati, N., & Ramayanti, R. (2016). Manfaat Pemberian Insentif Pajak Penghasilan dalam Kepatuhan Wajib Pajak UMKM. Jurnal Akuntansi, Ekonomi, Dan Manajemen Bisnis, 4(2), 176–185.

Rizqia, Almira. (2024). Pengaruh Insentif Pajak terhadap Perkembangan UMKM di Indonesia. Jurnal Ekonomi dan Bisnis, 12(1), 123-135.

Statistics Indonesia. (2023). Profil Industri Mikro dan Kecil 2022. https://www.bps.go.id/id/publication/2023/10/27/c1f1e0126c61890fdf03d74c/profil-industri-mikro-dan-kecil-2022.html

The PRAKARSA. (2022). Pajak Kekayaan: Kebijakan Fiskal untuk Menambah Penerimaan Negara, Redistribusi Kekayaan, dan Akselerasi Pembangunan Sosial. https://theprakarsa.org/pajak-kekayaan-kebijakan-fiskal-untuk-menambah-penerimaan-negara-redistribusi-kekayaan-dan-akselerasi-pembangunan-sosial/

United Nations. (1966). International Covenant on Economic, Social and Cultural Rights (ICESCR).

Wahyudi. (2022). Peran Strategis Pajak Mewujudkan Keadilan Sosial. Jurnal Ilmu Sosial dan Humaniora, 1(1), 58-69.

Zamzam, Irfan & Ansar, Resmiyati. (2024). The Effect of Tax Incentives on Compliance of UMKM Taxpayers during the Pandemic: A Case Study of UMKM Taxpayers Registered at KPP Pratama Ternate. JIA (Jurnal Ilmiah Akuntansi). 9(1), 334-347.