Gov’t to Optimize Fair State Revenue through Harmonized Taxation Law, Minister Says
By : Nata Kesuma | Friday, October 08 2021 - 22:05 IWST
Minister of Finance Sri Mulyani Indrawati (Photo by: PR of Cabinet Secretariat)
INDUSTRY.co.id - Law on Harmonized Taxation (UU HPP) is one of the milestones of Indonesia’s tax reforms, which is part of structural reforms to realize an Advanced Indonesia through a just, proper, and accountable taxation system.
Tax reform is also part of sustainable processes to boost economic recovery and national development through restructuring of taxation system so that the national economy can be more robust amid the pandemic and in face of future challenges.
The Harmonized Taxation Law must include the principles of justice, efficiency, legal certainty, usefulness, and national interests, according to Minister of Finance Sri Mulyani Indrawati on Thursday (07/10).
Sri Mulyani went on to say that the Harmonized Taxation Law aims to improve economic growth and support the acceleration of economic recovery, adding that, it also aims to optimize state revenue, realize fair taxation system, provide legal certainty, carry out administration reforms, and realize harmonized, consolidative taxation policy so that it can broaden the national tax base amid the age of globalization and digital technology.
Furthermore, through the Harmonized Taxation Law, the Government will continue to improve voluntary obedience of taxpayers.
On that occasion, Sri Mulyani also unveiled six points of policy improvement regulated in this new law, among others, income tax that will be implemented in 2022, value-added tax (VAT) that will be put in place on 1 April 2022, Voluntary Disclosure Program (VDP) that will only impose next year’s 1 January until 30 June, carbon tax that will be implemented on 1 April 2022, several adjustments to Law on General Provisions and Taxation Procedures and Law on Excise that will be effective from the enactment of this law.