PERAN PAJAK PENGHASILAN PASAL 22 DALAM MENDORONG FORMALISASI UMKM DI INDONESIA

Abstract

Taxation plays a vital role in the economy and economic growth of a country, particularly in Indonesia. Taxes, as the primary source of funding for infrastructure development and public services, support the government's efforts to create a conducive environment for sustainable economic growth. This article examines the role of Income Tax (PPh) in enhancing economic growth, with a focus on its contribution to infrastructure development. The study shows that increased revenue from PPh contributes significantly to financing infrastructure projects that improve economic mobility and the quality of human resources. Furthermore, various economic growth theories that strengthen the relationship between taxes, government spending, and economic growth are discussed. Research shows that the synergy between taxes and infrastructure development can create a positive cycle that strengthens the national economy. Therefore, the importance of effective tax planning and management, as well as appropriate allocation to productive sectors, is key to achieving inclusive and sustainable economic growth. The study shows that the implementation of Income Tax Article 22 has a positive impact on formal and material taxpayer compliance, promotes orderly administration, and increases fiscal awareness of business actors. However, on the other hand, PPh 22 also creates liquidity burdens, administrative complexity, and regulatory uncertainty. Therefore, increasing public awareness, simplifying procedures, and engaging broader tax authorities are crucial steps to increase the effectiveness of this policy.