[INSIGHT] Tax digitalization needed to aid pandemic relief, boost recovery

Suahasil Nazara and Jay Rosengard
The Jakarta Post

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Jakarta/Boston / Wed, February 10, 2021 / 11:09 pm

[INSIGHT] Tax digitalization needed to aid pandemic relief, boost recovery

A worker attaches a notice on an advertisement billboard on Jl. Juanda in South Tangerang, Banten, in this photo file. According to the tax office, the advertiser has not registered the billboards for taxation. (JP/epost-robot)

Tax system digitalization will provide a potent second shot in the arm to accompany recent COVID-19 vaccine breakthroughs as Indonesia strives to provide relief from the pandemic’s devastating impact and pursue post-pandemic recovery and growth. Digitalization is not the ultimate objective. Instead, it is a tool to enable the Directorate General of Taxation (DGT) to fulfill its mission better. A report by the United Nations-based Better Than Cash Alliance finds that digitalization of tax systems in emerging markets, when coupled with complementary administrative reforms, can raise annually an additional US$300 billion worldwide. This can help close much of the fiscal gap that threatens achievement of both the UN’s Sustainable Development Goals and Indonesia’s vision to become a high-income nation by 2045. The government has been extremely proactive in respon...