Page 2 - Working Paper (Tax Policy Options during Economic Downturn)

Tax Policy Options

during Economic Downturn

Adri A. L. Poesoro* TABLE OF CONTENTS

Obviously, during economic downturn, the
right approach to drive economy forward 1. Introduction ............ 3
is to increase government expenditure
rather than increasing taxes. The 2. Tax Policies during
Government of Indonesia tries to alleviate Economic Crisis:
the economic downturn by increasing Literature Review .... 4
government expenditures and providing
some tax incentives. 3. Indonesia
Economic Outlook
This paper will identify fiscal tools and and Tax Policy
mechanics, especially related to tax Measurements ........ 9
strategies, typically used by the authority.
Rest of the paper will provide cross- 4. Conclusion
country revenue collection strategies and Policy
during economic crisis and describe Recommendation .... 13
Indonesia current and future economic
outlook as well as identify fiscal policies
recipes during downturn.

In the end, this paper concludes the
composition of taxes and government
spending which are important
determinant for economic growth, also
provides short-term and long-term policy
recommendations.

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