"For tax reform, we continue to do enforcement in administration, human resources, and information communication technology (ICT)," Indrawati said during a working meeting with the House Budgetary Committee (Banggar) in Jakarta on Wednesday.
Income tax revenues are projected to grow 10.7 percent, or Rp680.9 trillion, with sources of growth including the impact of the technical rebound in revenues in 2021, namely supervision of periodic payments (VAT), she informed.
Tax revenues will also be strengthened by the expansion of the tax base, namely the search for new sources of revenue or Material Compliance Supervision as well as the main contributory sector, which is projected to maintain positive growth, she said.
Value-added tax (PPN) revenue will grow 10.1 percent, or Rp552.3 trillion, in line with the recovery of domestic economic activity, expansion of VAT collection, and taking into account the normalization of growth in 2021, she added.
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Meanwhile, next year's tax policy will include expanding the tax base by increasing compliance through educational activities and improving tax services, Indrawati disclosed.
Furthermore, innovation will be carried out to explore potential, while maintaining the investment climate and sustainability of the business world, expanding tax payment channels and enforcing fair laws to encourage taxpayer compliance, she said.
Tax reform will also be carried out to realize a healthier and fairer taxation system in order to support development funding, the minister added.
Providing further details, she said the reform will be carried out through policy reforms, namely tax incentives that focus on high value-added sectors and absorb a lot of labor and are provided in a measurable and efficient manner.
"We hope that there are more individual tax payers in Indonesia. This number of taxpayers can happen if our middle-income class grows," Indrawati said.
In addition, policy reforms will also be carried out to address the challenges of competitiveness while maintaining and expanding the tax base, she added.
Not only that, reforms will also be carried out to ensure more efficient administration as well as legal certainty in taxation as well as optimal use of funds and financial information, including adaptation to digital developments, the minister said.
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Translator: Astrid F, Azis Kurmala
Editor: Suharto
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