Internet Packages Purchasing Decision after VAT Increase in Indonesia

Vierly Ananta Upa

Abstract


The purpose of this study is to ascertain the impact of the VAT rise on internet packages purchasing decisions. This study utilized data derived from responses to a linear scale questionnaire completed by 120 students in Surabaya, addressing the increase in VAT rates. Data analysis technique is simple regression analysis. The acquired data analyzed with SmartPLS version 3.1 software. This study determined that the implementation of an 11% VAT had a negligible impact on the decision to acquire internet packages. The minimal correlation among these variables is attributable to various factors, including the significant relevance of internet packages for daily living and other variables such as rising customs taxes or accelerating technology advancements. This study's results demonstrate the efficacy of a government initiative aimed at restoring the state budget following the pandemic two years prior. The lack of a substantial effect in this study demonstrates that a 1% rise in the VAT rate does not impose a hardship on the public when purchasing essential commodities. The elevation of VAT rates can steady state earnings without imposing further burdens on the purchasing choices of Surabaya students concerning internet packages

Keywords


VAT, internet, purchase, decision

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v46.2.6647

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