Indonesian govt must crack down on tax mafia: PDIP

Indonesian govt must crack down on tax mafia: PDIP

Hasto Kristianto. (ANTARA/Prasetyo Utomo)

Jakarta (ANTARA News) - Secretary General of the ruling Indonesian Democratic Party of Struggle (PDIP) Hasto Kristiyanto said the government should fight tax mafia.

"Now is the time for the government to crack down on tax mafia. At the same time, it should also make fundamental changes in its budget policy in the draft 2015 revised budget," Kristiyanto said here on Friday.

According to him, the government can take various measures such as introducing online tax payment, tax auction in every regional tax office, measuring its objective performance, and increasing the countrys tax collection ratio, which is still low at 52.8 percent.

"A significant step to make the state budget healthier is to crack down on tax mafia," he added.

The central executive board of the PDIP will support the governments efforts to fight tax mafia, he remarked.

Last week, the government banned 168 tax payers from leaving the country as they had tax debts to settle.

Their tax debts amount to Rp100 million or more each and they are not allowed to leave the country as we fear they do not intend to settle their tax obligations.

A letter issued by the finance minister on Wednesday stated that those assuming responsibility for 147 corporate tax payers and 21 individual tax payers were banned from leaving the country.

Among the defaulters are 40 foreign tax payers from some Asian countries, the United States, Australia, and Europe each with a total debt of Rp57.2 billion, and 128 Indonesians with a total debt of Rp541.6 billion.

The ban is temporary and is applicable on those having unsettled debts of Rp100 million or more each and those who have shown no intention to settle their debts.

The ban will remain for up to six months and will be extended by another six months.

By Dec. 17, 2014, the taxation directorate general processed recommendations to ban 487 tax payers from leaving the country. They include 402 corporate tax defaulters and 85 individual defaulters with a total unsettled debt of Rp3.21 trillion.

Of the recommendations for ban, 65 are on foreign tax payers, both individuals and corporate parties, while the remaining are on Indonesians.

Defaulters are given time and right to request for payment by installments for roll over before their deadline is over.

The directorate general will demand payment by force based on the PPSP law if tax payers fail to use their right to seek payment by installments or ask for roll over even after receiving a warning from the taxation directorate general.
(Uu.A014/INE/KR-BSR/F001)

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