Pro-People Taxation: A Path to Economic Stability

BETVNEWS - Taxes are an inevitable tool in the modern economic system. Apart from being a source of revenue for the Indonesian government, Taxes are a crucial factor that must be considered in achieving economic stability.

Taxes play a significant role in shaping fiscal policies, controlling inflation, stimulating economic growth, and achieving a more equitable distribution.

Taxes, as government revenue, are used to finance various programs and government activities. This includes the provision of public services, infrastructure, and social protection.

Efficient and fair taxation can ensure the sustainability and financial stability of the country, which, in turn, contributes to overall economic stability.

In addition, taxes also play a role in controlling inflation. When inflation rises, the Indonesian government can utilize tax instruments to manage aggregate demand in the economy.

The government can reduce public spending and curb excessive inflation by increasing tax rates or removing specific tax incentives.

Taxation as a Source of Infrastructure Development Financing

The intensive infrastructure development carried out by the Indonesian government is one of the factors contributing to the decrease in inflation in Indonesia. 

Statistics Indonesia (BPS) reported an inflation rate of 4.00 persen for May 2023, a reduction of 0.33 persen compared to April. This inflation figure represents the lowest recorded in 2023.

The central government facilitates the flow of goods to production centers through infrastructure development, thereby reducing logistics costs. 

Infrastructure development will help curb inflation by ensuring more balanced logistics distribution across all regions of Indonesia.

The government has undertaken many infrastructure projects, and one notable achievement of President Joko Widodo's government is the development of toll roads. The 2023 homecoming (mudik) season serves as tangible evidence that toll road construction provides a multiplier effect for travelers.

Mudik travelers, or those who travel back to their hometowns, experience faster and time-saving journeys with toll roads compared to alternative routes. 

According to data from Statistics Indonesia (BPS), during President Joko Widodo's government, 1,762 kilometers of toll road infrastructure was built, with a target of completing 750 kilometers of toll roads by 2024.

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