TEMPO.CO, Jakarta - The government’s target to boost tax revenues by 30 percent this year can be considered as an ambitious plan.
Nonetheless, the government believes that they can reach the target by appointing Sigit Priadi Pramudito as the new Director General of Taxes. His background as an official in charge of dealing with big time taxpayers would serve as an important capital.
During his term as Head of Regional Large Tax Office, Sigit handled around 400 corporate taxpayers.
The figure is equal to 40 percent of the total corporate taxpayers, which reaches 1,300 corporate.
It was this background that made Directorate General of Taxes believes that it the target would be met.
The government sets the target of tax revenues at Rp1,484.6 trillion in the 2015 revised state budget.
This figure is higher by Rp104.6 trillion compared that the one set at 2015 state budget, which was at Rp1,380 trillion.
It also means that the target of revenues from taxes rises by 30 percent compared to the target in 2014.
The increase in the target is indeed quite high. Some even deem that figure as too ambitious and ‘fantastic’.
In the history of the country’s budget since the Suharto era, the target of tax revenues has never been set that high. Hence, it is not surprising that see the ambitious increase in the target, there is a skeptical question that emerges: Will the Tax Directorate General be able to realize it?
The skepticism was also triggered by the record of previous revenues that were not too promising.
In the period of the budget year of 2002 and 2014, the government only once reached the target, which was in 2008.
Seeing the facts of failure in reaching the target of tax revenues in the past few years, the government’s target to increase revenues from taxes 30 percent this year is clearly not an easy task.
Therefore, in a bid to boost such a big amount of revenues from taxes, extra efforts are obviously needed.
The new Director General of Taxes is expected to able to make breakthroughs in order to meet the target or at least to approach the target.
There are two factors that so far that have caused the target of tax revenues have not been met: First, the poor level of obedience in paying taxes and second, law enforcement to tax evaders that remains weak.
The Tax Directorate General must change the system of paying taxes so that it can easier and more controlled.
Firm actions must also be made in tax examination because there are still many corporate that deliberately evade paying taxes.
Currently, the government estimates there are approximately 4,000 corporate that never pay taxes.
One of the most common excuses that are often used is because their companies always suffer from financial loses.
Law enforcement to tax evaders must be done.
It can be done through the move, called gijzeling or hostage in literal Dutch translation - and the moratorium of the agreement of double tax evasion with a number of countries.
Therefore, the Directorate General of Taxes must immediately make breakthroughs if they are really serious in securing sources of revenues and increase tax revenues target this year.
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