Hani Fitria Rahmani, Muhammad Alam Mauludina, Delina Herdian Septiani

GREEN TAXATION, TAX STRUCTURE, AND COLLECTION EFFICIENCY FOR ECONOMIC GROWTH: MODERATING ROLE OF INFORMATION TECHNOLOGY

Introduction

Green taxation, tax structure, and collection efficiency for economic growth: moderating role of information technology. Discover how green taxation, tax structure, and collection efficiency drive Indonesia's economic growth, with information technology as a key moderator. Policy insights.

Abstract

This study examines the effects of green tax policy, tax structure, and tax collection effectiveness on economic growth, with information technology as a moderating variable. The research addresses fluctuations in economic growth in Indonesia that are associated with inefficiencies in tax policy design and implementation. A quantitative cross-sectional approach was applied using data from 150 Pratama Tax Service Offices. The findings indicate that green tax policy, efficient tax structure, and effective tax collection significantly contribute to economic growth. Furthermore, information technology strengthens these relationships by enhancing administrative efficiency and taxpayer compliance. This study contributes to the literature by integrating fiscal policy and digital transformation perspectives within an endogenous growth framework. Practically, the results imply that policymakers should optimize green tax instruments, simplify tax structures, improve tax administration effectiveness, and accelerate digital transformation in taxation systems to achieve sustainable economic growth. These findings highlight the importance of aligning fiscal and technological strategies in developing countries.

Review

This study presents a timely and highly relevant investigation into the complex interplay between green taxation, tax structure, collection efficiency, and economic growth in Indonesia, critically integrating the moderating role of information technology. The paper’s objective to address fluctuations in economic growth tied to tax policy inefficiencies is well-articulated, highlighting a significant practical problem. The quantitative cross-sectional approach, utilizing data from 150 Pratama Tax Service Offices, provides a robust empirical foundation for its analysis. The findings, which indicate that green tax policy, an efficient tax structure, and effective tax collection significantly contribute to economic growth, are compelling and underscore the importance of well-designed fiscal policies. A notable strength of this research lies in its explicit contribution to the literature by integrating fiscal policy and digital transformation perspectives within an endogenous growth framework. This theoretical synthesis offers a novel lens through which to view the dynamics of taxation and development in emerging economies. The most impactful finding is perhaps the demonstration that information technology significantly strengthens the relationships between tax variables and economic growth, through enhanced administrative efficiency and taxpayer compliance. This insight provides a strong empirical justification for accelerating digital transformation in taxation systems. The practical implications are clearly articulated, offering concrete recommendations for Indonesian policymakers to optimize tax instruments, simplify structures, improve administration, and leverage technology for sustainable economic growth. While the cross-sectional design effectively identifies significant relationships, it inherently provides a snapshot in time and may limit the ability to draw definitive causal inferences over extended periods. Future research could potentially explore longitudinal data to further elucidate the dynamic causal pathways and long-term impacts of these interventions. Nonetheless, the study delivers a valuable and comprehensive analysis, effectively bridging economic theory with actionable policy recommendations. Its focus on a developing country context like Indonesia, coupled with the integration of fiscal and technological strategies, makes it a highly pertinent and impactful contribution to both academic discourse and practical policy formulation for sustainable development.

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