Tax DG: Tax Compliance in Indonesia Remains Low

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  • Indonesian Finance Minister Sri Mulyani (Left) and the Director General of Tax (Tax DG), Ken Dwijugiasteadi. Image: TEMPO/Tony Hartawan

    Indonesian Finance Minister Sri Mulyani (Left) and the Director General of Tax (Tax DG), Ken Dwijugiasteadi. Image: TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - The Tax Directorate General (Tax DG) at the Finance Ministry said that the tax compliance in Indonesia remains lower than other ASEAN countries.

    “The tax ratio [in Indonesia] is lower than those in other countries, such as Malaysia and Singapore,” Tax DG spokesperson Hestu Yoga Saksama told Tempo in Jakarta yesterday, July 19.

    Hestu revealed that Indonesia’s tax ratio stands at around 10.3 percent, lower than those of Malaysia and Singapore at above 13 percent.

    Read: Sri Mulyani Expects Better Tax Compliance from Palm Oil Firms

    “This is not good for the country’s economy and development,” he added.

    Hestu explained that the tax ratio is fundamental to realize the tax reform. The government has set a target to improve the tax ratio to 15-16 percent.

    According to him, improving the tax ratio is a big homework for the government. Hestu said that among the tasks to be completed by the Tax DG include a reform in terms of human resources.

    Other contributing factors to the realization of the target include tax amnesty and the issuance of Government Regulation in Lieu of Law (Perpu) No. 1/2017 on Exchange of Financial Information.
    “The Perpu will become a good instrument for the Tax DG to boost the tax compliance,” Hestu said.

    DIKO OKTARA


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