| dc.description.abstract | Tax has an important role in the economy as a source of goverment revenue, and fiscal intsrument. However, tax can also reduce efficiency in economic activity. The tax to GDP ratio of Indonesia is still low at a level of 12% in average over the last fifteen years. Nevertheless, economic growth relatively shows good performance with an average about 6% since the last ten years. Theres is needed a research because in previous studies about taxation and economic growth in several countries showed different on results. This study will analyze connection between taxation and economic growth of Indonesia. Secondary data were used from period 1980-2013 with variable of GDP, and the details of tax revenue. By means of VAR analysis result, concluded that there is uni directional relationship between the economy and taxation in Indonesia, which is the economic growth affects taxation. | en |
