"We will continue to carry out consistent administration and policy improvement without causing problems to the business process," Minister Mulyani stated in her address at a taxation seminar here on Tuesday (Sept 12).
She noted that the efforts to improve taxation administration and the business process will be streamlined at the regional and central government levels as well in tax offices without changing policy designs.
"If the tax regulation design is complex and its enforcement is complicated, it will frustrate both the tax officials and taxpayers, thereby resulting in a decline in the capacity to collect taxes," she remarked.
She emphasized the importance of the principle of equality and justice in tax collection, though currently, several professional institutions continue to seek privileges in meeting their tax obligations, thereby making the taxation administration process more complicated.
The minister pointed out that professional institutions have different characteristics, for instance, those engaged in the natural resources, pharmacy, construction, education, entertainment, communication, and state-owned enterprise sectors.
"There are several constituents that need various special treatments. If we respond to the institutions, with special economic activities, then we will need to conduct a more complex administration. This complexity leads to the enforcement of tax collection becoming low," she explained.
In the meantime, the Taxation Directorate General (DJP) had recently revealed that cumulative tax revenues in the first eight months of this year had reached Rp686 trillion, or some 53.5 percent of the target of Rp1,283 trillion set in the 2017 state budget.
"Tax revenues were around 10.23 percent higher than those recorded in the same period last year," Director of Services and Public Relations of the DJP Hestu Yoga Saksama remarked here on Monday last week.
Tax revenues until August this year included Rp378 trillion from non-oil/gas income tax, Rp267 trillion in value-added tax and luxury sales tax, Rp1.2 trillion in land and building tax (PBB), Rp4.3 trillion in other taxes, and Rp35 trillion in oil and gas income tax.
"The PBB in the first eight months last year had reached Rp15 trillion. There was a change in the regulation that the PBB will be received in September 2017. There is no problem," Saksama stated.
He noted that tax revenue in August alone had totaled Rp85 trillion, or some three percent lower than Rp87 trillion recorded in the same month last year.
"It is necessary to bear in mind that last year, revenues under the tax amnesty program had reached almost Rp5 trillion in August, and PBB for August this year at around Rp10 trillion has not yet been received," he remarked.
He pointed out that the biggest challenge in tax collection during the remaining part of this year is additional revenues from tax amnesty.
"The DJP still has to work extra hard until the end of the year," he emphasized.
Tax payers are expected to be more compliant, and those not taking part in the tax amnesty program are urged to meet their tax obligations, he added. (*)
Editor: Vicha Faradika