The Role of Tax Incentives in Supporting a Green Economy in Micro, Small, And Medium Enterprises in Kendari City

Authors

  • Imran Imran Universitas Sulawesi Tenggara
  • Mariani Mariani Universitas Sulawesi Tenggara
  • Ghalib Suprianto Universitas Sulawesi Tenggara
  • Ifin Naim Universitas Sulawesi Tenggara
  • Suyuti Suyuti Universitas Sulawesi Tenggara

Keywords:

Green Economy, MSMes, Perception, Tax Incentives,

Abstract

The effects of decreasing natural carrying capacity and increasingly losing biodiversity systems encourage us to think about policy concepts that are not only oriented toward output growth but also about the sustainability of increasingly limited natural resources. One relevant concept is providing incentives to MSMEs as a driver for implementing a green economy by utilizing resources sustainably and minimizing pollution and other environmental impacts. As one of the most significant contributors to GDP, MSMEs must transform by introducing green management processes in business activities. The existence of tax incentives is intended to encourage MSMEs to support the green economy with indicators of green attitude, green strategy, green governance, green monitoring, and green modeling. Based on this, this research aims to describe the perceptions of MSME business actors towards tax incentives and analyze the relationship between tax incentives and green economy indicator variables. This research uses a sign test to see whether there are fundamental differences without paying attention to these differences and Spearman rho to test the relationship between variables. Based on the results of the sign test show that only the green strategy has no effect, even though there are tax incentives with a value of 0.05 < 0.8282. In other words, if there is no difference between before and after the existence of tax incentives, the probability of getting at most 6 out of 10 respondents who report no role of tax incentives is 82 percent. Meanwhile, other indicators show the role of incentives in supporting the implementation of a green economy. Meanwhile, the Spearman Rho results show that the green strategy and green modeling indicators have no or weak relationship with tax incentives.

References

ASEAN Investment Report 2022, Pandemic Recovery and Investment Facilitation, UNITED NATIONS UNCTAD, ISSN 2963-279X October 2022.

IPCC Working Group III, (2022). Working group III contribution to the sixth assessment report on the intergovernmental panel on climate change. Climate change 2022. Mitig.Clim.Change https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_FullReport.pdf

Lestari, A. F., & Abdillah, J. (2021). Implementasi Insentif Pajak Penghasilan Pasal 22 Akibat Covid-19 Di PT MI. Jurnal Ekonomi dan Bisnis, 4(1), 24-29.

Makmun, M. (2011). Green economy: konsep, impelentasi dan peran Kementerian Keuangan. Jurnal Ekonomi dan Pembangunan, 19(2), 1-15.

Mitchell, S., O’Dowd, P., & Dimache, A. (2020). Manufacturing SMEs doing it for themselves: Developing, testing, and piloting an online sustainability and eco-innovation toolkit for SMEs. International Journal of Sustainable Engineering, 13(3), 159-170. https://doi.org/10.1080/19397038.2019.1685609

Mohammad, R., Rizal, H. Z., & Gede Satria Pujanggo, P. G. (2021). Efek Insentif Perpajakan Berdasarkan Dasar Pengenaan Pajak dan Tarif Pajak Terhadap Ekonomi Secara Makro: Studi Kasus Indonesia. Scientax, 2(2), 179-198.

Neri, A., Cagno, E., Di Sebastiano, G., & Trianni, A. (2018). Industrial sustainability: Modelling drivers and mechanisms with barriers. Journal of Cleaner Production, 194, 452-472.

Shashwat, K, (2019), SMEs: Key Drivers of Green and Inclusive Growth, OECD Green Growth Papers, pp. 3–56

Sohns, T. M., Aysolmaz, B., Figge, L., & Joshi, A. (2023). Green business process management for business sustainability: A case study of manufacturing small and medium-sized enterprises (SMEs) from Germany. Journal of Cleaner Production, 401, 136667.

Sun, X., Su, W., Guo, X., & Tian, Z. (2021). The impact of awe induced by the COVID-19 pandemic on green consumption behavior in China. International Journal of Environmental Research and Public Health, 18(2), 543.

Supranto, J, 2001, Statistik, Teori dan Aplikasi, Jilid 2 Edisi 6, Penerbit Erlangga

Wang, J. M., & Li, Y. Q. (2022). Soft Economic Incentives and Soft Behavioral Interventions on the Public’s Green Purchasing Behaviour-The Evidence from China. Psychology Research and Behavior Management, 2477-2499.

Wysocki, J. (2021). Innovative green initiatives in the manufacturing SME sector in Poland. Sustainability, 13(4), 2386.

Downloads

Published

2024-04-26

How to Cite

Imran, I., Mariani, M., Suprianto, G., Naim, I., & Suyuti, S. (2024). The Role of Tax Incentives in Supporting a Green Economy in Micro, Small, And Medium Enterprises in Kendari City. International Journal of Management and Education in Human Development, 4(01), 1086–1091. Retrieved from https://ijmehd.com/index.php/ijmehd/article/view/264

Issue

Section

Articles