Jakarta, CNBC Indonesia – The government will discuss reform of the tax system in the near future. In fact, the discourse to reintroduce the tax amnesty policy has surfaced.
First, the government plans to increase value added tax (VAT) starting next year. This plan cannot be separated from efforts to increase government revenue amid mounting debt.
For now, the government has set a VAT rate of 10%. Indonesia is one of the countries that imposes a single rate for VAT or Value Added Tax (VAT). This is the mandate of the 2009 VAT Law with a VAT range of 5% -15%.
In 2021, the theme of the government’s fiscal policy is still expansive. Preliminary VAT refunds are also part of the National Economic Recovery (PEN) program for business actors who are included in the Rp 45.08 trillion budget.
However, the plan to increase the VAT has drawn criticism from the DPR. This step was considered to be like the era of the Vereenigde Oostindische Compagnie (VOC) or the so-called company.
“The same method was taken during the Dutch colonial era. When the Company lacked money to finance the operations of the colonial government, the Company raised taxes,” said a member of DPR Misbakhun to CNBC Indonesia.
“Why is this company method used as a reference and the Minister of Finance Sri Mulyani wants to imitate?” asked Misbakhun.
According to him, the ranks of the Ministry of Finance had lost their common sense and creativity to boost revenue, until this policy plan appeared. However, it should be understood that the economic and political risks involved are enormous. Although the VAT is planned to use a two-tariff scheme.
“This multi-rate VAT will be a burden for taxpayers for administering the existing transactions of tax collectors, namely taxpayers for carrying out their obligations according to the law,” he explained.
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