G20 should push for the formation of an international tax commission under the UN.
Jakarta (ANTARA) - Indonesia, having assumed the G20 Presidency mantle, should propose the formation of international tax commission, Publish What You Pay’s (PWYP’s) National Coordinator and C20 Indonesia's, G20 official partner from civilian organization, Co-Chair Aryanto Nugroho stated.

"G20 should push for the formation of an international tax commission under the UN," he told ANTARA here on Saturday.

According to Nugroho, the presence of an international tax commission under the UN is expected to address the problem of injustice and legal uncertainty in handling illicit financial flows due to tax evasion.

In addition, the existence of an international tax commission could avoid an unhealthy tax war between nations, he opined.

Moreover, the nation requires a strong taxation system on account of large-scale digital economic development, with market capitalization exceeding US$7 trillion, he noted.

However, this digital economy has not yet provided its best contribution in increasing tax revenue, he noted.

To this end, large-scale inclusive action is deemed necessary wherein advanced and developing nations collectively formulate a tax regulation that is more fair.

The Indonesian Government managed to achieve tax revenue realization of Rp1.277.5 trillion, or 103.9 percent of the targeted Rp1.229.59 trillion in 2021.

This achievement should be followed by maximizing the realization of a fair taxation concept.

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"There should be justice in which the rich should pay higher taxes and not be given several reduction or remission facilities," House of Representatives' (DPR's) Commission XI member, Anis Byarwati, noted.

Last year, Indonesia had recorded an increase in commodity prices that supported the tax revenue, she stated.

However, based on the tax revenue performance in 2021, the revenue structure has not changed.

Byarwati attached greater importance to the government's commitment to maximizing revenue, specifically a fair taxation.

Fair tax is one aspect that the government should take into account to change the taxation revenue structure, especially concerning employees and non-employees' personal income tax, she emphasized.

In addition, in 2022, the government should ready a systematic strategy and planning to ensure that the policy package within the Taxation Regulation Harmonization (HPP) Law could proceed well, such as the voluntary publishing program (PPS).


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Translator: M Razi Rahman, Fadhli Ruhman
Editor: Rahmad Nasution
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