JRSSEM 2022, Vol. 01, No. 11, 2016 – 2026
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v1i11.207 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
THE EFFECT OF VAT AND PAYROLL TAX(PPH21) ON THE
GROWTH OF COMMUNITY CONSUMPTION, GROSS
DOMESTIC PRODUCT, AND ECONOMIC GROWTH IN
INDONESIA
Rio Johan Putra
1*
Shiva Dewanti Nabila
2
1,2
Universitas 17 August 1945 Jakarta
e-Mail: jakarta.john@uta45.ac.Id
1
, sdewantinabila@gmail.com
2
*Correspondence: jakarta.john@uta45.ac.Id
Submitted: 26 May 2022, Revised: 06 June 2022, Accepted: 15 June 2022
Abstract. Taxes play an important role in the existence of the state, especially in implementing
improvements, considering that income from the expenditure sector can fund the development of
national consumption. This study aims to determine the effect of VAT (VAT) and PPH (payroll tax)
on the growth rate of public consumption, gross domestic product and the rate of economic
growth in Indonesia as a moderating variable in country data in the statistical center and databox
starting from 2002 - 2021. This sample uses country data for 20 years, This study uses multiple
linear regression assisted by SPSS version 24 program. The results of this study shows that PPN
and PPH affect the level of public consumption, while PPN and PPH have no effect on Gross
Domestic Product and also Indonesia's Economic Growth Rate. That is, it can be concluded that
VAT has no effect on the level of economic development in Indonesia which is registered in the
Central Statistics Agency and the database for the period 2002 – 2021. Thus, the hypothesis is
rejected.
Keywords: community consumption rate; gross domestic product; economic.
Rio Johan Putra, Shiva Dewanti Nabila
| 2017
DOI : 10.36418/jrssem.v1i11.207 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
INTRODUCTION
Taxes play an important role in the
existence of a country, especially in the
implementation of improvements
considering that income in the
expenditure area can finance the
consumption progress of a country
(Aghamohamadi & Amjady, 2017). In
the Indonesian economy, cost is one of
the areas needed to finance increased
consumption (Basri, 2013); (Liebman et
al., 2019). With expense income, we can
understand a sustainable improvement
program, where expenditure is one of
the sources of state revenue that has the
largest commitment in funding the
repair cycle in a country. Thus, tax
collection areas must be increased so
that they can support the progress of
society in Indonesia (Dufrénot & Jawadi,
2013); (Santika et al., 2019).
Fully determined to support
alleviating the impact of COVID-19 (Lin
et al., 2021), the government provides a
strategy for the driving force of the
burden to anticipate the monetary
impact of COVID-19, one of which is the
motivator for Article 21 PPh. Based on
PMK 23/PMK.03/2020, Article 21 PPh is
borne by the Government (DTP) for a
sufficiently long period of time for
workers with a gross wage of not more
than 200 million rupiah for a certain
assembly area (440 KLU), WP for Ease of
Import for Export Purposes (KITE) and
WP for Ease of Import for Small and
Medium Industry Exports (KITE IKM)
entirely aimed at generating additional
income for workers in the assembly area
to offset purchasing power (Conesa &
Kehoe, 2018).
As a non-industrialized country, the
Unitary State of the Republic of
Indonesia has advanced in all fields to
provide benefits (Usman, 2021),
especially in the field of tax collection.
The greater the costs claimed by the
company, the less net profit and vice
versa. In this way, organizations often
limit fees in a way that is contained in
the responsible person's guidelines in a
way that ignores the law in its
implementation. There are differences
in interests between citizens and public
authorities. Citizens try to pay as few
fees as possible considering the fact
that paying duty means reducing the
monetary capacity of citizens (Conesa &
Kehoe, 2018). After all, public authorities
need assets to support government
organizations, most of which comes
from levy revenues.
Article 21 income tax installments
are made in the current year through
deductions by means of a certain
collection. Associations that are obliged
to keep, keep and report Income Tax
Article 21 are management,
government investors, benefit reserves,
elements, organization, and
coordination. Article 21 Personal
expenses detailing through the annual
assessment form (SPT). This Annual SPT
is used as a way to report estimates and
installments of obligations that must be
paid in accordance with regulatory
arrangements and expenditure
guidelines. And furthermore to report
installments or through storage of
expenses or various other expenses in a
fiscal year or part of a fiscal year. In
2018 | The Effect of Vat and Payroll Tax(Pph21) on the Growth of Community Consumption,
Gross Domestic Product, and Economic Growth in Indonesia
addition to the SPT, attach a Tax
Payment Letter (SSP) (Lind et al., 2017).
SSP is a letter used by citizens to make
installments or pay off fees owed to the
state depositary. Financial development
is an issue that is drawn to the economy
of a country towards a superior
condition for a certain period and can
also be linked as a condition of
expanding the boundaries of the
creation of an economy that appears as
an expansion in public income
(Samargandi et al., 2015); (Guru &
Yadav, 2019); (Sobiech, 2019).
The development of their finances
means that the progress of the
monetary turnover of events. In a large-
scale test, the financial development
achieved by one country is estimated by
the original public income balance
achieved by one country. The worldwide
financial emergency that has hit most
countries on the planet, including
Indonesia, shows that a country's
economic balance cannot depend
entirely on a secret area. The
commitment of the public authority
area is also very solid. In particular, the
expenditure factor of public authorities,
government speculation that can create
jobs and net commodities that can
increase public salaries (Du & Peiser,
2014).
The factors impacting VAT, import
duties, development of open utilization,
GDP and the pace of financial development
in Indonesia have a close relationship with
this, these factors are fluctuating
information. I need to know how the factors
above are very persuasive. Based on the
background that has been explained, it
encourages researchers to encourage
further research by formulating a number
of objectives, including: 1. To find out
whether VAT (VAT) has an effect on the
growth rate of public consumption. 2. To
find out whether the Payroll tax (PPH21)
has an effect on the growth rate of public
consumption. 3. To find out whether VAT
(VAT) has an effect on Gross Domestic
Product. 4. To find out whether Payroll tax
(PPH21) has an effect on Gross Domestic
Product?
METHODS
This study uses a quantitative approach
in which the object of the study is VAT (VAT)
(X1), Payroll Tax (PPh21) (X2), consumption
growth rate in the community (Y1), gross
domestic product (Y2) and economic
growth rate (Y3). This research method uses
descriptive methods, namely collecting,
compiling, processing, and analyzing data
in order to provide a situation so that
conclusions can be drawn. The type of data
used is quantitative data because the
researcher will calculate how big the
influence of VAT, payroll tax, growth in
public consumption, gross domestic
product, and the rate of economic growth.
By using Partial Least Square (PLS-SEM,
and taking data from the official website of
the Central Statistics Agency and the
database in 2002 – 2021 (research sample).
In this study, researchers identified
research problems, then continued with a
study of research literature related to
problems and variables which was adopted
in this study, then developed into a
research framework related to the problem
to be studied, identifying each variable,
Rio Johan Putra, Shiva Dewanti Nabila
| 2019
hypotheses and research design
development, determining the technique
to be used, data collection to data
management and producing discussions
and conclusions from this research.
RESULTS AND DISCUSSION
Table 1. Autocorrelation test results Autocorrelation
Model Summary
b
Model
R
R Square
Adjusted R Square
Std.Error of the Estimate
Durbin-Watson
1
.518
a
.268
.182
2.62410
1.431
The test results obtained a Durbin-
Watson value of 1.431 with n of 20 and
k (independent variable) of 2, the
Durbin-Watson table value of dL 1.100
and dU 1.536. If the Durbin value -
Watson earned is between nil ai 4-dL <
dW < 4-dU then, there is no symptom
of multicollinearity. 4-dL = 4-1,100 = 2.9
and 4-dU = 4-1,536 = 2,464. Based on
these results, the Durbin-Watson value
obtained is 2.9 < 1.431 < 2.464 which is
between the 4-dL and 4-dU values, so it
can be concluded that there is no
autocorrelation symptom.
Table 2. Multicollinearity Test Results
Coefificients
a
Model Unstandardized Coefficients Standartdized Collinearty Statistics
ceofficients
b std. .error Beta t sig Tolerance VIF
1 (constant) 4.987 1.080 4.619 .000
PPN -7.426E-7 .000 -.510 -2.374 .030 .931 1.074
PPH 4.645E-11 .000 .026 .122 .904 .931 1.074
a. Dependent Variable : TPKM
Statistical test results, for the VAT
variable, the tolerance value is 0.931 and
the VIF value is 1.074. Furthermore, for
the PPH variable, the tolerance value is
0.931 and the VIF value is 1.074. From
the multicollinearity test, it can be seen
that the influential variable has a
Tolerance > 0.10 and a VIF value < 10.
Based on the results obtained, the
tolerance value for the VAT and PPH
variables is greater than 0.10 and the VIF
value obtained is smaller than 10. So , it
can be concluded that there is no
2020 | The Effect of Vat and Payroll Tax(Pph21) on the Growth of Community Consumption,
Gross Domestic Product, and Economic Growth in Indonesia
multicollinearity symptom in the
regression model.
Heteroscedasticity Test
Figure 1. Heteroscedasticity Test Results
It can be seen that the points spread
randomly and are spread both above and
below zero on the Y axis, it can be
concluded that there is no
heteroscedasticity.
Figure 2. Heteroscedasticity Test Results
Rio Johan Putra, Shiva Dewanti Nabila
| 2021
DOI : 10.36418/jrssem.v1i11.207 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
It can be seen that the points
spread randomly and are spread both
above and below zero on the Y axis, so
it can be concluded that there is no
heteroscedasticity.
Figure 3. Heteroscedasticity Test Results
It can be seen that the points
spread randomly and are spread both
above and below zero on the Y axis.
Normality
This normality test is carried out on
each variable to find out which variables
meet and do not meet the assumption
of normality (the variables are normally
distributed). In this normality test
carried out using the Normal Probability
Plot
Figure 4. Normality Test Results
Rio Johan Putra, Shiva Dewanti Nabila
| 2022
DOI : 10.36418/jrssem.v1i11.207 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Figure 5. Normality Test Results
It can be seen that the results of the
normality test show that the points
spread around the line and follow the
diagonal line on the Normal P-Plot of
Regression, so the residual value is
normally distributed. So that the
regression meets the assumption of
normality.
It can be seen that the normality test
results show that the points spread
around the line and follow the diagonal
line on the Normal P-Plot of Regression,
then the residual value is normally
distributed.
So that the regression meets the
assumption of normality.
Hypothesis
Esting The F test was conducted in
this study to test whether all
independent variables simultaneously
affect the dependent variable. Criteria in
decision making by comparing Sig-F
with = 0.05. If Sig-F < 0.05 then the
regression coefficient is significant and
If Sig-F 0.05 then the regression
coefficient is not significant
Table 3. Simultaneous testing (F Test)
ANOVA
a
Model Sum Of Squares df Mean Square f sig
1 Regression 42.913 2 21.456 3.116 .070
b
Residual 117.060 17 6.886
Total 115.973 19
a. Dependent Variable : TPKM
b. Predictors : (constant),PPH,PPN
Rio Johan Putra, Shiva Dewanti Nabila
| 2023
From the results shown, it can be
concluded that VAT (VAT) (X1), Payroll
Tax (PPh21) (X2), ) together – the same
affects the variable The level of
consumption growth in the community
(Y1), gross domestic product (Y2) and
the level of economic growth (Y3). with
a significance level of 0.000. In making
this decision on the hypothesis, it can be
seen by comparing the probability value
of p with the level of significance,
namely . which if the value of the
probability p (column sig) the level of
significance that is used (5%) then it can
be concluded that the value of
probability (column Sig.) p < the level of
significance (5%), this indicates that the
independent variables affect
simultaneously to the dependent
variable.
Partial hypothesis testing (t test)
The t test was conducted to test the
effect of the independent variable
partially on the dependent variable. This
t test was performed to determine the
significance of the regression
coefficient. Decision criteria are taken by
comparing Sig-t with = 0.05. If Sig-t <
0.05 then the regression coefficient is
significant, and If Sig-t 0.05 then the
regression coefficient is not significant
the decision taken in the partial
hypothesis test (t test) is seen from the
sig column. Namely VAT is 0.030, PPH is
0.904 in TPKM, VAT is 0.051, PPH is 0.995
is in GDP, VAT is 0.956, PPH is 0.766 This
is in TPE which if a model can be said to
be significant or the independent
variable affects the dependent variable
partially if the value from sig. less than
the specified level of significance. In this
study, the significant value used is 5% so
that it can be taken a decision that VAT
and PPH are very influential on TPKM ,
this can be seen from the significance
value below 0.05 while VAT and PPH on
GDP and TPE are not significant because
it can be seen from the value is above
0.05.
The effect of VAT (VAT) on the growth
rate of public consumption
The independent variable can be
said to have a significant effect on the
dependent variable if the significance
value of the dependent variable is less
than 0.05. and vice versa if the value of
significance is greater than 0.05 then the
independent variable has no significant
effect on the dependent variable
(Ghozali, 2006). It can be seen from the
results of SPSS testing, the results of the
study show that the value of VAT on the
growth rate of public consumption is
0.030 > 0.05 so that VAT has an effect on
TPKM.
The influence of PPH21 on the growth
rate of public consumption
The independent variable can be
said to have a significant effect on the
dependent variable if the significance
value of the dependent variable is less
than 0.05. and vice versa if the value of
significance is greater than 0.05 then the
independent variable has no significant
effect on the dependent variable
(Ghozali, 2006). It can be seen from the
SPSS test results, the research results
show that the PPH value on the growth
2024 | The Effect of Vat and Payroll Tax(Pph21) on the Growth of Community Consumption,
Gross Domestic Product, and Economic Growth in Indonesia
rate of public consumption is 0.904
<0.05 so that PPH has no effect on
TPKM.
Effect of VAT on Gross domestic product
The independent variable can be said
to have a significant effect on the
dependent variable if the significance value
of the dependent variable is less than 0.05.
and vice versa if the value of significance is
greater than 0.05 then the independent
variable has no significant effect on the
dependent variable (Ghozali, 2006). It can
be seen from the results of the SPSS test,
the results of the study show that the value
of VAT on gross domestic product is 0.051
> 0.05 so that VAT has an effect on GDP.
The effect of PPH on Gross Domestic
Product Gross Domestic Product (GDP)
is the sum of all value added goods or
services produced by the region within a
certain period of time (one year). The
increase in Gross Domestic Product (GDP)
occurs as a result of increased economic
activity in a region. Increased economic
activity affects people's income. The higher
the income, the number of assets/wealth
and the amount of public expenditure, the
higher the ability to pay taxes, especially
income taxes. GDP per capita is influenced
by population, the number of residents can
have a positive and negative impact, GDP
per capita itself is the average income
generated by each resident for one year in
an area/region. This is also in accordance
with research conducted by Muhammad
Ikhsan Nasution (2017) which found that
GRDP has a positive and significant effect
on tax overall tax compared to other types
of taxes. The estimation results show that
income tax has a positive and significant
effect on government revenues and
Indonesia's economic growth. That the
growth rate of government revenue has a
positive impact on increasing the ratio of
income tax to Indonesia's total tax revenue,
the ratio of value added tax to Indonesia's
total tax revenue, and Indonesia's
economic growth. Economic growth is an
economic activity that causes goods and
services produced in society to increase
(Sukirno, 2010). Good economic growth
and continues to increase will contribute to
VAT receipts because good economic
growth will ensure that it continues to
occur.
The influence of PPH on the level of
economic growth in Indonesia
Economic growth is a process of
changing economic conditions that occur
in a country on an ongoing basis to lead to
a situation that is considered better over a
certain period of time. The theory of
economic growth explains the factors that
influence or determine economic growth
and its long-term process, an explanation
of how these factors interact with one
another, so that it can lead to a growth
process. Economic growth is directly
proportional to income tax revenue where
if economic growth increases every year,
income tax revenue will also increase.
Encouraged by research by Wenni
Rismawati (2013), a positive coefficient
indicates that if economic growth
increases, it will cause an increase in
income tax revenues. Increased economic
growth in Indonesia can increase per capita
income, where an increase in people's per
capita income will always be followed by an
Rio Johan Putra, Shiva Dewanti Nabila
| 2025
increase in paying taxes, so that in the end
it will increase the number of tax receipts
for the state, especially income taxes.
CONCLUSIONS
This research was conducted with the
aim of testing the effect of VAT (vat) and
Payroll Tax (pph21) on the growth rate of
public consumption, Gross Domestic
Product, and the level of economic growth
in Indonesia. as a moderating variable in
State Data from 2002 – 2021. 1) In the VAT
variable on the level of development of
public consumption, it can be concluded
that VAT has an effect on the level of
consumption development of Indonesian
people who are registered in the Central
Statistics Agency and databox for the
period 2002 – 2021. These results can be
seen from the Sig value obtained, where
the Sig value obtained is smaller than 0.05.
2) In the PPH variable on the level of
development of Indonesian people's
consumption, it is concluded that PPH has
no effect on the level of development of
Indonesian people's consumption which is
registered in the Central Statistics Agency
and the database for the period 2002 –
2021. The results are seen based on the Sig
value obtained, because the Sig value
obtained is greater than 0.05. So there is a
rejection of the hypothesis where VAT has
no effect on the level of development. 3) In
the VAT variable on Gross Domestic
Product, the Sig value obtained is smaller
than 0.05. Thus, the research hypothesis is
accepted. That is, it can be concluded that
VAT has an effect on Gross Domestic
Product registered in the Central
Statistics Agency and databox for the
period 2002 – 2021. 4) In the PPH variable
on Gross Domestic Product, the Sig value is
greater than 0.05. Thus, the hypothesis is
rejected. This means that it can be
concluded that PPH has no effect on Gross
Domestic Product registered in the Central
Statistics Agency and the Databox for the
Period 2002 – 2021. 5) In the VAT variable
on the level of economic growth, the Sig
value obtained is greater than 0.05. Thus,
the research hypothesis was rejected. That
is, it can be concluded that VAT has no
effect on the level of economic
development in Indonesia which is
registered in the Central Statistics Agency
and the database for the period 2002 –
2021.
In the PPH variable on economic
development in Indonesia, the Sig value
obtained is greater than 0.05. Thus, the
hypothesis is rejected. This means that PPH
has no effect on economic development in
Indonesia which is registered in the Central
Statistics Agency and the database for the
period 2002 – 2021.
REFERENCES
Aghamohamadi, M., & Amjady, N. (2017).
Modelling and optimisation for costly
efficiency improvements on residential
appliances considering consumer’s
income level. IET Generation,
Transmission & Distribution, 5(16),
3992–4001.
Basri, M. C. (2013). A tale of two crises:
Indonesia’s political economy. JICA-RI
Working Paper, 5(7), 1–37.
https://doi.org/10.18884/00000660
Conesa, J. C., & Kehoe, T. J. (2018). An
introduction to the macroeconomics of
2026 | The Effect of Vat and Payroll Tax(Pph21) on the Growth of Community Consumption,
Gross Domestic Product, and Economic Growth in Indonesia
aging. In The Journal of the Economics
of Ageing (Vol. 5, pp. 1–15). Elsevier.
https://doi.org/https://doi.org/10.1016
/j.renene.2014.02.038
Du, J., & Peiser, R. B. (2014). Land supply,
pricing and local governments’ land
hoarding in China. Regional Science and
Urban Economics, 4(8), 180–189.
https://doi.org/https://doi.org/10.1016
/j.regsciurbeco.2014.07.002
Dufrénot, G., & Jawadi, F. (2013).
Computational tools in econometric
modeling for macroeconomics and
finance. Economic Modelling, 3(4), 1–14.
https://doi.org/10.1016/j.econmod.201
3.05.008
Guru, B. K., & Yadav, I. S. (2019). Financial
development and economic growth:
panel evidence from BRICS. Journal of
Economics, Finance and Administrative
Science, 2(4), 113–126.
Liebman, A., Reynolds, A., Robertson, D.,
Nolan, S., Argyriou, M., & Sargent, B.
(2019). Green finance in Indonesia. In
Handbook of Green Finance (pp. 557–
586). Springer.
https://doi.org/10.1007/978-981-13-
0227-5_5
Lin, W., Shao, Y., Li, G., Guo, Y., & Zhan, X.
(2021). The psychological implications
of COVID-19 on employee job
insecurity and its consequences: The
mitigating role of organization adaptive
practices. Journal of Applied Psychology,
6(3), 317–325.
https://doi.org/https://doi.org/10.1037
/apl0000896
Lind, D. A., Marchal, W. G., & Wathen, S. A.
(2017). Statistical techniques in business
& economics. McGraw-Hill Education.
Samargandi, N., Fidrmuc, J., & Ghosh, S.
(2015). Is the relationship between
financial development and economic
growth monotonic? Evidence from a
sample of middle-income countries.
World Development, 6(8), 66–81.
https://doi.org/https://doi.org/10.1016
/j.worlddev.2014.11.010
Santika, T., Wilson, K. A., Budiharta, S., Law,
E. A., Poh, T. M., Ancrenaz, M., Struebig,
M. J., & Meijaard, E. (2019). Does oil
palm agriculture help alleviate poverty?
A multidimensional counterfactual
assessment of oil palm development in
Indonesia. World Development, 2(11),
105–117.
https://doi.org/https://doi.org/10.1016
/j.worlddev.2019.04.012
Sobiech, I. (2019). Remittances, finance and
growth: Does financial development
foster the impact of remittances on
economic growth? World Development,
3(11), 44–59.
https://doi.org/https://doi.org/10.1016
/j.worlddev.2018.08.016
Usman, M. (2021). Zakat Within The Frame
Of The Unitary State Republic Of
Indonesia: Adaptability Of Sharia Values
And Cultures. Indonesian Journal of
Islamic Literature and Muslim Society,
6(1), 231–244.
https://doi.org/https://doi.org/10.2251
5/islimus.v6i1.4028
© 2022 by the authors. Submitted
for possible open access publication
under the terms and conditions of the Creative
Commons Attribution (CC BY SA) license
(https://creativecommons.org/licenses/by-sa/4.0/).