Page 11 - Indonesia Taxation Quarterly Report (Q1-2020)

Executive Summary

mostly use their income taxes (PIT and are still slightly infected such as Bolivia
CIT) measurement. However, value and Rwanda. These group of countries
added tax (VAT) and other consumption tend to use administrative tax measure
taxes (import tariff, good and service tax and expansive expenditure policy for
[GST], and excise) also widely used by COVID-19 prevention and medical
many country and economies. Besides support.
tax measures through certain taxes,
administrative relieves are often used by From the global response comparison,
many affected countries. it can be concluded that the measures
taken by Indonesia are in line with other
Certain pattern can also be analyzed countries. Indonesia is even considered
based on the COVID-19’s size of damage. to be quite progressive by reducing
Countries that have higher number corporate income rates and applying
of total cases such as Italy, China, digital taxes where very few countries
Germany and United States, tend to use do it. The lesson can be drawn from
various tax instrument to stimulate the countries experience, is the importance
economy. On the other hand, limited of systematic approaches and build
stimulus is given by economies that coherent system of actions.

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