Jakarta (ANTARA) - Non-governmental organisation Center for Indonesia Taxation Analysis (CITA) has projected the 2022 national tax revenue to continue to record positive performance after the country surpassed its tax revenue target this year.

Indonesia has recorded tax revenue worth Rp1,231.87 trillion (US$86.5 billion) in 2021, reaching 100.19 percent of the targeted Rp1,229.6 trillion (US$86 billion).

"Despite the positive projection, the government must set a strategy and plan to ensure that the policies enacted by the Tax Regulation Harmonization Law, such as the voluntary tax disclosure policy, can proceed smoothly," CITA researcher Fajry Akbar noted in Jakarta on Wednesday.

A moderate tax revenue target, positive economic growth expected to surpass growth in 2021, an optimised tax supervision system, and the recently passed Tax Regulation Harmonization Law, effective by 2022, are several factors that may boost tax revenue in the country next year, the researcher noted.

The government's success in surpassing the taxation revenue target has exceeded the public's expectations, for which the feat must be lauded, Akbar emphasized.

The government must also strategize to face future challenges, such as the transition of the conventional, brick-and-mortar businesses model into a digital business that is projected to become permanent, he affirmed.

The researcher also highlighted the government's persistence in providing generous taxation incentives in 2021 under the national economic recovery programme.

As of December 24, 2021, the government had spent a total of Rp63.16 trillion -- reaching 100.5 percent of the budget limit -- for tax incentives during the COVID-19 pandemic, he noted.

"Despite the national taxation revenue target having been reached, the government is consistent in supporting national economic recovery through taxation instruments for sectors heavily affected by the COVID-19 pandemic," Akbar stated.

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Translator: Agatha Olivia V, Nabil Ihsan
Editor: Sri Haryati
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