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Jakarta Post

Damages to tax reform

  • The Jakarta Post

  /   Wed, March 31 2010   /  10:12 am

Finance Minister Sri Mulyani Indrawati’s quick decision to replace the whole staff of the tax assessment unit of Gayus H. Tambunan, who is being charged with corruption and money laundering, could be a good, yet small start in the big drive needed to maintain the public’s confidence in the tax reform.Only strong, credible law enforcement and a more effective internal control system at the Tax Directorate General could contain the damage to the three-year sweeping tax reform, which has been touted as the paragon of bureaucratic reform. If the public perceives that the government is not serious about taking drastic measures to root out and prevent malfeasance at the Tax Directorate General, the entire bureaucratic and civil service reform program will be greatly doubted. Without a significant, steady progress in the overall bureaucratic reform, the country could be in for another ...