ANALYSIS OF THE INFLUENCE OF PER CAPITA INCOME, AGRICULTURE, INDUSTRY, FOREIGN DIRECT INVESTMENT, HUMAN DEVELOPMENT INDEX, AND CORRUPTION ON TAX REVENUE IN INDONESIA: A CASE STUDY AT THE REGIONAL OFFICE OF THE DIRECTORATE GENERAL OF TAXES WITH A WORKING A

Abstract

Tax revenue is the main source of state revenue in Indonesia. Indonesia's tax revenue in terms of tax ratio is still not optimal when compared to Southeast Asian countries and other countries in general. This study aims to examine the effect of per capita income, agriculture, industry, foreign direct investment, human development index, and corruption on tax revenue at the Regional Office of the Directorate General of Taxes with a working area of ??one province from 2013-2022. The selection of research objects was carried out using purposive sampling technique and 100 observations were obtained. The sample selection was carried out by eliminating provinces that did not have a Regional Office of the DJP with a working area of ??only one or part of the province. This study uses quantitative methods with panel data regression with the Correlated Panels Corrected Standard Errors regression model. The results showed that (1) per capita income has a positive effect on tax revenue, (2) agriculture has no effect on tax revenue, (3) industry has a positive effect on tax revenue, (4) foreign direct investment has a positive effect on tax revenue, (5) human development index has a positive effect on tax revenue, and (6) corruption has no effect on tax revenue.