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Govt won’t raise taxes, plans to lower rates: Hashim
Hashim Djojohadikusumo, a top adviser to and brother of President Prabowo Subianto, said the government is seeking ways other than increasing tax rates to shore up tax revenue.
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An official explains procedures to a taxpayer on March 3, 2024, at the tax office of Palangka Raya, the capital of Central Kalimantan. (Antara/Auliya Rahman)
T
he government plans to lower tax rates while still increasing tax revenue, as Indonesia’s tax-to-gross domestic product ratio remains low compared to other countries.
Hashim Djojohadikusumo, a top adviser to and brother of President Prabowo Subianto, said the government is seeking ways other than increasing tax rates to shore up the country’s tax revenue.
“No, we will not increase taxes. We will increase tax revenue by bringing in more people who are currently not yet paying taxes,” Hashim said on Wednesday as quoted by Kumparan.
He asserted that the government had no intention of raising tax rates, noting that tax rates and tax revenue were fundamentally different concepts.
“We can raise the ratio to the level of Cambodia or Vietnam without having to increase tax rates,” Hashim added.
According to a World Bank report published in March, Indonesia is among the countries with the lowest tax revenue in the world with a tax-to-GDP ratio of just 9.1 percent in 2021, far below the average for middle-income countries in Southeast Asia.
That figure marks a drop of 2.1 percentage points over the preceding decade.
