Online System Able to Boost Tax Revenue

TEMPO.CO, Jakarta - Destry Damayanti, chief economist of Bank Mandiri, said yesterday that the best way to anticipate low tax revenue is by switching to online taxation system.

Tax directorate general must focus not only on tax revenue of businessmen, Destry said, adding: "If the directorate only depends on certain tax, it will be greatly affected by business climate."

Tax revenue can be increased by reducing expenditures. One of them is by reducing budget allocation on subsidy. "Tax revenue target cannot be achieved because it is directly proportional with economic growth. Indonesia still heavily relies on income taxes (PPh) and investment is slowing down. The most possible way is to control the expenditures in infrastructure and government spendings," said Destry.

The government needs to improve facilities and infrastructure so that people can enjoy the taxes they are paying for. "Many people don’t mind paying taxes, but then they wonder why they should pay taxes. That’s why, there needs to be an integration with other government agencies to use taxes for people’s welfare. It cannot be just tax directorate general since it only collects taxes," Destry said.

Coordinating Minister for Economic Affairs Chairul Tanjung previously said he was confident that Indonesia's tax revenue would hit the target this year. "There seems to be reduction in revenue, so it will be difficult to achieve the target in the revised state budget," he said yesterday.

AMOS SIMANUNGKALIT