Kodrat WibowoTidak ada Data DosenADI TRESSANTO2024-05-302024-05-302015-04-24https://repository.unpad.ac.id/handle/kandaga/120720120014This study examines the impact of the 2008 Tax Reform on Indonesian people’s welfare using static Computable General Equilibrium (CGE) model. The focus of this research is the effect of the changes in corporate income tax rates in the Income Tax Law Number 36 Year 2008 on the market equilibrium. Furthermore, as the ultimate goal this study evaluates the impact of 2008 tax reform on the production sectors, household sector, government sector, investment, foreign sector, and social welfare using Indonesia`s Input Output Table Year 2008 in the general equilibrium framework. This paper adapts conventional static CGE model developed by Kato (2013) and employs FORTRAN software to execute the calibration and simulation process to obtain the benchmark and simulation results. The simulation results indicate that increasing Corporate Income Tax (CIT) rate policy rate has made society worse off, while reduction in CIT rate generates improvement in social welfare which means the 2008 Tax Reform policy has positive impact. The finding for agriculture sector simulation results are interesting because even though it has small contribution to gross domestic product and tax revenue; agriculture sector is observed to experience the largest impact in both increasing and decreasing CIT rate simulations. For the consequence, incentive to agriculture sector should be prioritized by the government in order to boost the economic growth. Another finding is that implementing counterfactual secondary policy simultaneously in order to maintain balanced budget condition provides moderate result than standalone policy.tax reformsocial welfarecomputable general equilibrium