Entrepreneurs Ask Government to Trim Tax Rates

INDUSTRY.co.id - Jakarta, the businessmen think the government needs to lower the tax rate gradually this year, so that the impact is not too significant, given the tax base in Indonesia that is not yet wide.

The goal is to improve the competitiveness of national industry, especially in the midst of the United States government (US) which began to carry out tax reform in the country.

Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) International Affairs Sector, Shinta W. Kamdani sees there are risks from some US policies that reform the taxation and normalization of the monetary side.

"With the new US tax policy feared will attract investors out of Indonesia," said Shinta in Jakarta (5/1/2018).

According to her, the government should create a competitive tax system ranging from the amount of taxes, calculation process, and reporting mechanisms. Employers understand that the government needs enormous funds for infrastructure development.

"We are always open to discussions with the government to find the best solution," she said.

This year the government targets tax revenue growth of 24 percent to Rp 1,423.9 trillion. This target increased from last year's target of Rp1,283.6 trillion.

On the other hand, Director General of Taxation Ministry of Finance Robert Pakpahan revealed, it has mapped a strategy to boost tax revenue this year. It will run the routine things that have been done by the Directorate General of Taxes to boost revenues.

"The service, education, ease to pay and submit any report, will be continued as usual, then the supervision that has been done and already in our procedure will still be done, that routine thing we have done will still be done," he said.

In addition, Robert continued, it will conduct several initiatives of tax reform programs. Increasing the quality and the amount of human resources (HR), organizational restructuring either in the Tax Office (KPP) or in the Regional Office (Kanwil) change in business processes, improvement of information systems and technology (IT) and improvement of rules.

"The regulation concerning the draft law on KUP is being discussed by the House of Representatives and the draft of PPh and PPN is being discussed in the Ministry of Finance," he said.

As for the business process, Robert said it would improve the process to improve governance, both in terms of revenue or data utilization.