The Role of the State in Facing the Weakening of the National Economy Amid the Covid 19 Pandemic through Tax Incentives (a) DR. Dyah Adriantini Sinta Dewi, S.H., M.Hum. (b) Habib Muhsin Syafingi, S.H., M.Hum. (c) Suharso, S.H., M.H. (d) Budiharto, S.H., M.Hum. (e) Dilli Trisna Noviasari, S.H., M.H.
Universitas Muhammadiyah Magelang
Abstract
The Covid-19 pandemic has weakened the national economic sector. Not only Indonesia, the weakness in this sector was also felt by other countries. The government has returned to designing a strategy so that the economic recovery can run quickly. Thus, the country^s economy did not return to a deeper correction.
The Covid 19 pandemic had three major impacts on the Indonesian economy so that it entered into a time of crisis. the first impact is to make household consumption or purchasing power, which is the 60 percent support for the economy, fall deeply. This is evidenced by data from BPS which records that household consumption fell from 5.02 percent in the first quarter of 2019 to 2.84 percent in the first quarter of this year. The second impact, namely the pandemic, causes prolonged uncertainty so that investment also weakens and has implications for the cessation of business. The third impact is that the entire world is experiencing a weakening economy, causing commodity prices to fall and Indonesian exports to several countries to stop.
Tax incentives are one of the policy steps that the government has taken in the face of an economic slowdown due to the Covid-19 pandemic. The government, in this case is the Ministry of Finance, stipulates several Government Regulations in Lieu of Law which took effect on April 1, 2020, some of which regulate the taxation of taxpayers in Indonesia. Therefore, this tax incentive regulation needs to be reviewed in terms of optimizing the empowerment of the business sector so that they can survive during the Covid 19 pandemic as it is today.
To achieve this goal, this study uses an exploratory approach. With a qualitative exploratory method, this research produces analytical exploratory data. Activities in analyzing this include reducing the data obtained by looking at the concepts and developments in the application of the principle of justice in the imposition of e-commerce taxes and then presenting data that can provide a def
Keywords: the role of the state, the weakening of the national economy, tax incentives, covid 19
