The Implementation Of Green Economy Can Earn Taxes Of Up To IDR 80 Trillion

Illustration of Rupiah (photo: dock. Antara)

JAKARTA - The potential for state tax revenue is expected to increase higher if it is supported by the implementation of a green economy.

Economist and Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira said the output of the green economy program was able to generate state revenues of IDR 80 trillion during the 10 years of the green economy development program.

Based on the calculations of Celios and Greenpeace Indonesia, the acceptance came from the impact of direct and indirect green economy activities.

"In short, the green economy is assumed to be able to provide a net tax of IDR 80 trillion. What is a net tax? Taxes are reduced subsidies," Bhima told reporters in Jakarta, quoted Wednesday, December 20.

Bhima said this shows that the transition from extractive economy to green economy will create additional on the tax ratio compared to income received by extractive economy.

"Thus, fiscal space is expected to be wider and the ability to pay off government debts and spending on social protection programs will improve," he said.

He even compared, if the Indonesian economy still relies on an extractive economy, the addition to state tax revenues will only reach around IDR 34.8 trillion in the next 10 years.

"So, what really goes into the state treasury is around Rp. 80 trillion, while if you take advantage of the extractive economy it is Rp. 34.8 trillion," added Bhima.