Acting director general of regional financial guidance at the ministry, Horas Maurits, explained that a strong PAD will help regions remain unaffected by fiscal dynamics at the central level. By increasing PAD, regional governments will not depend on funds from the central government.
"Regional revenue is a reflection to measure a region's independence. The bigger the PAD, the higher the region's independence level is," he added in a statement issued by his ministry here on Wednesday.
He said that regional governments must cultivate the spirit of entrepreneurship to explore their potential to increase the PAD.
It is also essential for regional governments to implement strategies to boost regional income sources.
"Regional governments must increase services to taxpayers and regional levy payers and increase coordination and synergy through cooperation in the field of revenue with stakeholders," he said.
According to Maurits, the tax system has been simplified, with the types of regional taxes and levies as well as methods of paying and reporting taxes made easier, new types of taxes added, changes made to rates, and additional tax mechanisms introduced.
"Therefore, it is hoped that the tax burden will be more fair and reasonable and encourage taxpayers to carry out their obligation to pay taxes consciously," he said.
He further said that administrative management is crucial for the success of regional tax and levy management. This is because it is important to improve the competence and skill of regional government officials as tax collectors.
"Thus, efforts to increase effectiveness and efficiency in the process of collecting regional taxes and levies can increase the optimization of regional tax revenue as a source of regional income and encourage an increase in regional fiscal independence," he explained.
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Translator: Narda Margaretha, Raka Adji
Editor: Arie Novarina
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