Prabowo Seeks the Best Strategies to Achieve 16% Tax Ratio

The tax ratio target of up to 16% set by Presidential Candidate Prabowo Subianto requires further study and assessment. While ambitious goals are commendable, they must also be realistic.

Annasa Rizki Kamalina

8 Mar 2024 - 20.14
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Prabowo Seeks the Best Strategies to Achieve 16% Tax Ratio

Indonesian Presidential Candidate Prabowo Subianto (left) with Indonesian Vice Presidential Candidate Gibran Rakabuming Raka at Prabwo's house in the Kertanegara area, South Jakarta, Friday (23/2/2024) (ANTARA/Ho-Dok Aminuddin Ma'ruf)

Bisnis, JAKARTA - The target of achieving a tax ratio of up to 16% by the new government appears challenging. Throughout President Joko “Jokowi” Widodo's two terms, historical data indicates that the growth in the tax ratio has not been notably significant.

Research Manager at the Center for Indonesia Taxation Analysis (CITA) Fajry Akbar suggests that a more expedient approach to boosting tax revenues is through the implementation of tax policies rather than the establishment of a State Revenue Agency (BPN).

"For instance, a mere 1% augmentation in the Value Added Tax (VAT) rate in 2022 could yield revenues of IDR 60 trillion," he mentioned on Wednesday (6/3/2024).

Moreover, he added that curtailing facilities and tax incentives could also yield a brief revenue surge, particularly for policies that don't necessitate legal amendments.

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Editor: Nindya Aldila
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Prabowo Seeks the Best Strategies to Achieve 16% Tax Ratio

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