Fitri Novia Heriani, Robert Sidauruk
Despite statistics showing an increase in State revenue from taxes, Indonesia has never managed to achieve the tax revenue targets set out in the State Budget (APBN).
State expenses that turn out to be higher than revenue and deficiencies in Government tax collection are two perennial causes of this issue.
According to Samon Jaya, staff analyst at the Directorate General of Tax, deficiencies in tax collection are caused by several factors. These include inadequate tax regulations, lack of human resources, and inappropriate tax concessions and incentives.
“However, the main reason is because most Indonesians have not registered themselves as taxpayers, or never pay nor report all assessable income,” Samon says.
Berly Martawardaya, economist from the University of Indonesia, believes there are several tax areas that could be optimized by the Government to boost State revenue. One of these areas, he continued, is to impose a Wealth Tax on people with certain levels of inco
Fitri Novia Heriani, Robert Sidauruk
Despite statistics showing an increase in State revenue from taxes, Indonesia has never managed to achieve the tax revenue targets set out in the State Budget (APBN).
State expenses that turn out to be higher than revenue and deficiencies in Government tax collection are two perennial causes of this issue.
According to Samon Jaya, staff analyst at the Directorate General of Tax, deficiencies in tax collection are caused by several factors. These include inadequate tax regulations, lack of human resources, and inappropriate tax concessions and incentives.
“However, the main reason is because most Indonesians have not registered themselves as taxpayers, or never pay nor report all assessable income,” Samon says.
Berly Martawardaya, economist from the University of Indonesia, believes there are several tax areas that could be optimized by the Government to boost State revenue. One of these areas, he continued, is to impose a Wealth Tax on people with certain levels of inco