[Free and Open for Public]
Speaker: Alin Halimatussadiah (LPEM FEB UI) & Satoshi Yamazaki (University of Tasmania)
41:35 - Q&A Session
If designed properly, fiscal instruments can be powerful to change behavior towards a more sustainable resource extraction path. Facing risk in fishery exploitation, imposing the right tax scheme will not only reduce unsustainable practice but also increase government revenue. In 2018, the fisheries sector contributed 2.29 percent to Indonesia's GDP while the sector only generated 0.22 percent of the total non-tax state revenue, which can be considered low compared to other extractive sectors such as forestry and coal. Currently, fishery-related taxes are only imposed on large vessels (more than 30GT). This study aims to examine the current fishery-related tax and develop simulations on two kinds of tax: license tax and production tax. We develop a model that accommodates the behavior of both large and small vessels on the fishing effort. We compare the impact of several tax scenarios to several outcome variables, namely share of the harvest of small vessels, distribution of fishery profits, tax revenue generated, and fish biomass.
Tuesday, 19 May 2020, 10.00 – 11.30 WIB
For access to presentation material, please visit our website: www.fkpindonesia.org
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