How Prabowo Subianto`s 16 Percent Tax Ratio would be Implemented
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24 January 2019 10:09 WIB
TEMPO.CO, Jakarta - Member of the Prabowo – Sandiaga Uno campaign team Drajad Wibowo explained the 16 percent tax ratio formula offered by the candidates would be achieved through lowering tax rates.
“This will be a stimulus for taxpayers upon paying their obligations,” said Drajad in a written statement on Wednesday, January 23.
The candidates first offered its 16 percent tax ratio economic program during the first presidential debate.
Drajad admits that Prabowo’s camp is aware that increasing the tax ratio from 11 percent to 16 percent would be a daunting task but are optimistic that it can be achieved if the pair are eventually elected as president and vice president.
Calculated based on Prabowo Subianto’s possible future term, this means that he would have to increase tax income to Rp800 trillion annually throughout the 5-year administration. The tax ratio will theoretically be achieved in the year 2024.
“Tax income will have to at least be increased by 1 percent each year,” said Drajad who also said that this policy is inspired by retail businesses that sell volumes with low-income margins that would eventually generate more profit overall.
RYAN DWIKY ANGGRIAWAN
