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Jakarta Post

Tax revenue still relies on big fish

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, March 14, 2019   /   05:48 pm
Tax revenue still relies on big fish Finance Minister Sri Mulyani Indrawati (third left) poses for a picture with Medco Energy founder Arifin Panigoro (left), Taxation Director General Robert Pakpahan (second left), Elang Mahkota Teknologi (Emtek) founder and chairman Eddy Kusnadi (third right), Triputra Group founder Rachmat Theodore Permadi (second right) and Pakuwon Jati founder Alexander Tedja at an award delivery for big taxpayers in Jakarta on Wednesday. (The Jakarta Post/Wendra Ajistyatama)

Finance Minister Sri Mulyani Indrawati has heaped praise on 30 taxpayers -- both individuals and corporations -- whose total contribution to tax revenue amounted to Rp 418.73 trillion (US$29.33 million) or 31.8 percent of the total tax revenue last year, which was recorded at Rp 1.32 quadrillion.

However, Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said relying on a small number of taxpayers as a source of tax revenue was like putting a large number of eggs in one basket.

“If the business performance of the big taxpayers is down, it will seriously affect state revenues. So it is a sustainable issue,” Yustinus said in Jakarta on Wednesday as quoted by kontan.co.id.

The composition of tax money that was centered on small number of people also indicated the wide disparity of wealth distribution because nearly 32 percent of tax revenue only came from 30 taxpayers, he added.

It meant that the Directorate General of Taxation needed to explore other tax avenues, Yustinus said, adding that the integration of taxpayers’ data that involved a third party was expected to help the tax office reach more taxpayers.

“If a tax office only considers statistical figures, it will only focus on monitoring big taxpayers,” he added, saying the approach should be changed by focusing on less obedient taxpayers.

A similar statement was made by PT Kideco Jaya president director Agung Kurnia Ariawan who said the tax potential in Indonesia was still untapped. “I suggest that the Finance Ministry improve the competency of tax personnel to net more taxpayers.” (bbn)