The Effect of Economic Growth and Inflation on Tax Revenue: Analysis on Areas with Dominant Economic Activities in Agriculture, Plantation, and Fisheries Sectors

Abstract

Tax revenue is the main focus of revenue in Indonesia's budget posture. Over the past decade, Indonesia's economic growth has stabilized at around 5 percent, and inflation has fluctuated but remained under control. The main objective of this research is to investigate the effects of economic growth and inflation in areas dominant with economic activity of agriculture, plantation, and fisheries sectors toward tax revenue. The data used is tax revenue data, inflation, and economic growth in Bengkulu Province from 2010-2016. The data analysis method used in this research is quantitative analysis method with a panel data regression method. From the results of the hypothesis test, it is known that the GDP/Economic Growth and Inflation variables significantly influence the income of Income-tax and VAT. This result is in line with previous studies that found Gross Regional Domestic Product has a positive effect on Tax Revenue. The results of this research also have academic implications, namely adding and enriching scientific studies in the field of tax revenue in areas with dominant economic activities of agriculture, plantation, and fisheries sectors