Know More Inventory Tax. We will now analyze the efficiency of tax problems. Now it's time to peel inventory tax issues that are part of the tax efficiency. This tax is a little unique because according to my observation no one has expressed and implemented.

This tax is imposed on the entire stock of the company. The purpose of this tax is to encourage companies to reduce the amount of inventory and increase sales. Why? Because companies do not want to subject to excessive taxes to save a large inventory. The higher taxes, more and more companies are reluctant to store inventory for more, because by storing large inventories of tax imposed more and more.

The first function, encourage the management of just in time (JIT) or at least approaching JIT. JIT itself was first used by Japan to reduce production costs. JIT system is a system where the supply is almost non-existent because the company produces such a way that when the finished goods (finished good / ready for sale) directly sold on the spot because the goods produced were exactly the schedule of sales. This system is able to save costs and can accelerate cash flow because there is no buildup of inventories. So why encourage JIT inventory tax, this is because companies would not be taxed because there are too many large stores of inventory. So the company is automatically gradually implement JIT.

The second function, push to reduce inventory obsolescence, inventory tax due, the company implemented JIT, and the result of applying JIT inventory obsolescence because of inventory also will be slightly less so will reduce production costs.

The third function, reduce production costs and encourage market competition. Inventory tax system would encourage the use of JIT, JIT system itself aims to reduce production costs. If the average firm has lower production costs, there will be greater competition as more and more the rate of return by a business sector on investment (margin), more companies will get into the business sector, diakarenakan people will be tempted by the business more promising. With so indirectly enhance employment opportunities as more and more companies are standing / add production capacity.

The fourth function, encourage the supply of goods. From the macroeconomic perspective, the tax will encourage supply goods inventories. Why? because of greater competition caused the number of firms producing the same goods so that the push to increase market supply. With prices so that created a lower profit margin by not sacrificing the company (law of supply "the greater the goods offered, the lower the price that occurred")

Besides the advantages, the implementation of inventory taxes also should not be excessive. Inventory taxes that are too large to make people be afraid of holding inventories due to store large inventories will be taxed, so the flow of goods will be affected especially if demand increases (lack of supply makes the market less flexible, with demand), especially the retail sector. Thus the taxation of inventories should be in an amount not too big so that it can be a "lubricant" in order to smooth the flow of goods but still flexible.

Conclusion inventory if the tax imposed proportionally, then the producers and consumers will benefit in the long term, will become more efficient producers and consumers will enjoy lower prices. Once can reduce unemployment indirectly.