In 2008, the Indonesian parliament approved the government's proposal to amend the income tax laws. The essential amendments included adjusting the personal income tax rates and adopting a new single corporate income tax rate. These amendments are part of the tax reform that has implemented gradually since the early 2000s. The relationship between tax policy reforms and the economy is complex; in some cases, large scale tax reform can impact through the inter industry linkages simultaneously, making it difficult to explain the impacts on the economy theoretically. However, identifying the...