Tax incentives are still granted but the process is more selective and its accountability will keep being maintained, and monitored by the Investment Minister.
Jakarta (ANTARA) - The government must focus on optimizing tax revenue in 2022, considering that the pandemic's impact on the economy remains huge and its end is still unclear, a member of the House of Representatives has said.

"The government should focus on how to optimize tax revenues," member of the House of Representatives, Sy. Anas Thahir, remarked in a press release received here on Friday.

According to an observation by the House's PPP (United Development Party) faction, shared by Thahir in his statement, the 2021 tax revenues are expected to miss the target due to the pandemic.

Tax optimization can be achieved by expanding the tax base and pushing taxpayer compliance through law enforcement against tax evasion and tax embezzlement, he advised.

Tax compliance can be enforced through the establishment of tax services and information dissemination to the community, he added.

"It includes efforts to develop a structured and measurable surveillance model and conduct tax reform in terms of organizations, technology, and databases," Thahir said.

The government is requested to improve the business process of managing non-tax revenue (PNBP), especially the mechanism of collection, calculation, deposit, and sanctions, so that the PNBP paid by taxpayers can be more accurate, transparent, and accountable, he explained.

Related news: Nations grapple to salvage state budget for economic recovery: RI

Earlier, Finance Minister Sri Mulyani Indrawati had assured that tax incentives would still be provided next year, but their provision would be more selective and their accountability would be maintained with the help of Investment Minister Bahlil Lahadalia.

"Tax incentives are still (going to be) granted but the process will be more selective and its accountability will keep being maintained and monitored by the Investment Minister," the Finance Minister said earlier at an online press conference on the Financial Memorandum and the 2022 State budget draft here.

Fiscal incentives provided in a more targeted and measurable manner with the help of the Investment Minister will produce quality investment, Indrawati added.

She said the government will also continue to implement tax reform next year using various ways and efforts to support state incomes.

Next year, state income is targeted to reach Rp1,840.7 trillion, including tax revenue of Rp1,506.9 trillion and non-tax revenue of Rp333.2 trillion, she pointed out.

The 2022 tax policy will be focused on expanding the tax base, especially objects and territorial-based expansion, and strengthening the tax system, both in core tax investment and business process, she added.

Related news: Draft 2022 state budget targets fiscal policy normalization: economist





Translator: M Rahman, Kenzu T
Editor: Rahmad Nasution
Copyright © ANTARA 2021