TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati and the House of Representatives' (DPR) Finance Commission have ratified the bill on the harmonization of taxation provision at the first-level meeting on Wednesday, September 29. This was previously known as RUU KUP or the bill on the general provisions on taxation (RUU KUP).

“The government believes that this bill will realize a more just and legal tax system,” Sri said in an official statement, Thursday, September 30.

According to Sri, several regulations have been agreed upon in this bill, starting from the imposition of taxes on crops, provisions on the follow-up of the Mutual Agreement Procedure (MAP) decisions, to provisions of administrative sanctions in the objection and appeal process.

The previous bill had been included in the 2021 priority National Legislation Program (Prolegnas). However, it had not been approved in the plenary meeting held by the DPR today.

The second-level meeting or the plenary meeting is scheduled to be held in the next few days on the agenda of the bill ratification. “It will be next week,” she added.

Sri further reiterated that the bill was expected to strengthen the tax administration reform being carried out by the government, including through the use of ID numbers (NIK) as tax identification numbers (NPWP) for individual taxpayers.

The bill was also believed to support Indonesia’s position in international cooperation and produce provisions on the final value-added tax rate, as well as optimize the country’s revenue through the expansion of the tax base, Sri Mulyani said.

Read: Sri Mulyani Talks of Alternative Minimum Tax Plan

FAJAR PEBRIANTO