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Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore, this study employs previously identified predictors to investigate the factors that persuade individual taxpayers to comply with the law.

Individual taxpayers in Indonesia (N = 699) who had experienced COVID-19-related benefits were asked to assess the provided evaluation regarding the tax compliance intention and its determinants. The bootstrapping analysis was employed using smart partial least squares (SmartPLS) to test the hypotheses.

The results suggest that the perceived fiscal exchange, tax morality, tax fairness, tax complexity and the power of authority are significant determinants of tax compliance intention. This study also supports the indirect effects of numerous factors on tax compliance intention through the perceived fiscal exchange and tax morality. In practice, reminding taxpayers of how tax payments fund public services, improving taxpayer morale, increasing the perceived fairness of the tax system, streamlining the tax code and managing the effectiveness of tax administration could all lead to a greater intention to comply with the law.

In addition to highlighting the dynamics of tax compliance amid the unprecedented pandemic crisis, our findings also provide insight into the importance of perceived fiscal exchange and tax morality for achieving and sustaining planned behavior to comply with tax rules.

The rising incidence of non-communicable diseases and sugar-sweetened beverages (SSB) consumption in Indonesia is a concern to the central government. However, the excise tax policy proposal for SSBs, introduced by the Minister of Finance in a 2020 meeting with the Parliament, remains unapproved until 2023. This study analyzes the process and factors influencing stakeholders in managing the implementation of the excise tax policy on SSBs in Indonesia.

This research is based on Kingdon’s Multiple Streams Theory (MST), focusing on the problem, policy and politics streams. It employs a qualitative design and combines a literature review and in-depth interviews in data collection. Interviews were conducted with policymakers, civil servants, senior representatives from nongovernmental health and consumer organizations, trade associations and academics in nutrition, health and taxation.

We identified that policy entrepreneurs have not succeeded in aligning the policy with the ideology of decision-makers and broader government goals. Therefore, the Parliament has not ratified the SSB excise tax policy until 2023. The effectiveness of interventions is expected to be the primary driver of policy adoption. Despite the complexity of this policy process, we conclude that implementing some reinforcing strategies may be necessary to facilitate policy change. In the Indonesian context, other actors who proactively manage potential criticism from multiple stakeholders are needed. The power of the Coordinating Ministry for Economic Affairs is expected to navigate political complexities and interests among stakeholders. Support for adopting the SSB excise tax policy will likely rise when framing policy alternatives aligns with decision-makers values, involves coordination between ministries, and has a broad public appeal.

Despite the constitutional mandate to regulate levies through legislation, there is no research on policy processes in Indonesia, specifically regarding levies and taxes. Examining the Indonesian institutional context in which a policy process takes place may improve the understanding of the many components of MST under unique conditions, providing insights into the specific factors that drive policy change in certain cases.