DETERMINANT OF VALUE ADDED TAX REVENUE IN ASEAN (THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS) COUNTRIES

Taxes play a coercive role within a general economy. Any new types of taxation, changes in tax systems or rates lead to increased business activity, changes in consumerism, affects the job market and consequently has an effect on growth. The dimension of competitiveness among most states that make Up (the Association of Southeast Asian Nations) can be seen by lowering tax rates, and any intention to transfer Money to spur economic growth. On the other hand, to fulfill their domestic political agenda, Asean members are also trying to reduce private tax rates. It is clear that the majority of ASEAN countries have Lower tax rates offer stronger economic growth prospects. Small tax revenue, however, restricts government spending, which may cause economic imbalances. Taxes playing a very important role for the sustainable growth of the economy in various ASEAN countries. Thus taxation and economic development have a positive relationship. This concept paper aimed at reviewing the tax efficiency in terms of sustainable economic development and discussing factors contributing to economic growth. This paper also attempts to carry out comparative analyzes between selected ASEAN countries with single Value added tax (VAT) rate and multiple VAT rate on how the tax system affected negatively Gross domestic profit (GDP) growth. The results usually recommend that both the tax rates put in place and the tax revenues collected over the past couple of years may have directly impacted growth and synchronized the stage of development.