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New tax system procurement on track but to be implemented only in 2024
The tax office says the process for the procurement of a core tax system to overhaul tax collection in the country is still on track, but it will be five years before the system will go into use
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The Directorate General of Taxation in Jakarta is preparing the procurement of IT facilities for its core tax system. (kontan.co.id/File)
T
he process for the procurement of a core tax system is still on track as scheduled, with the tax authority set to appoint a procurement agent in October, the government has said.
“In October, we are hoping to sign a contract with the procurement agent, who will conduct the procurement process for the core tax system,” the tax office’s director of business process transformation, Hantriono Joko Susilo, said in Kuta, Bali, on Wednesday. “We are hoping to announce the winner [of the tender] in October 2020.”
Hantriono said the appointment of an external procurement agent was in line with the tax office’s aim to build a comprehensive core tax system in the country, which he said was the first system procurement of this scale in Indonesia.
The whole process, which includes the procurement of the IT facilities and is projected to cost Rp 2.04 trillion for multiyear contracts, was scheduled to be concluded in 2023, and the new core tax system would be implemented in 2024, Hantriono added.
The procurement of the core tax system is one of the key pillars in Indonesia’s ongoing tax reform kicked off by Finance Minister Sri Mulyani Indrawati in 2016, which is aimed at overhauling operations of the tax office and improving services to taxpayers.
The reform of the tax administration is expected to increase Indonesia’s tax-to-GDP ratio by 1 to 1.5 percentage points, according to an International Monetary Fund study.
The government aims to raise the ratio to 12.2 percent this year, up from 11.5 percent booked in 2018. (hen)
