The Effect of Inflation Rate, Rupiah Exchange Rate and Economic Growth on Income Tax in Indonesia for the Period January 2018 – September 2021
Keywords:
Inflation Rate, Rupiah Exchange Rate, Economic Growth, Income Tax Revenue.Abstract
Income tax is a type of tax that is imposed fairly, but in fact a fair income tax is an income tax that is actually levied on income or on additional economic capacity. From several types of tax revenues, Income Tax was chosen because it is the largest contributor to state revenue to the APBN. And because of the role of PPh as a source of revenue, the researcher wants to know and look for empirical evidence how the Influence of Inflation Rate, Rupiah Exchange Rate and Economic Growth on Income Tax Revenue in Indonesia for the period January 2018 - September 2021. Through a decrease in the inflation rate, an increase in the rupiah exchange rate and the increase in economic growth is expected to increase Income Tax Revenue (PPh). The method used in this research is descriptive quantitative method. This research was conducted using secondary data sourced from the website of the Central Statistics Agency, Bank Indonesia, and the Directorate General of Taxes. This study used 36 samples. Data collection is carried out by examining inflation data, the rupiah exchange rate, and economic growth in the period 2018-2021. The results show a correlation of 0.353 or 35.3% indicating that income tax revenues can be explained by the inflation rate. While the rest (100% - 35.3% = 64.7%) is explained by other reasons outside the model. Testing the hypothesis by using the t-test, the t count value is 0.015 <0.05, which means that the test results show that the Inflation Rate has a partial effect on Income Tax Revenue (PPh).
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