TAX PERFORMANCE: ‘Seeking Shelter’ under Restitution

It's important to note that the higher the value of refund realization, the more it indicates that the taxpayer still requires fiscal assistance.

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30 Apr 2024 - 20.45
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TAX PERFORMANCE: ‘Seeking Shelter’ under Restitution

Gross tax revenues exhibited a positive growth of 0.64% when restitution was excluded. - Photo BID

Bisnis, JAKARTA—Restitution is frequently cited by policymakers as a reason for tax revenue shortfalls. However, it's essential to recognize that restitution is a legal mechanism and a taxpayer's right.

Therefore, portraying its use as illegitimate (haram) contributes to a decline in state deposits. Restitution should not be scapegoated for tax revenue shortfalls.

However, it's essential to recognize that restitution is a legal mechanism and a taxpayer's right. Therefore, portraying its use as illegitimate ("haram") contributes to a decline in state deposits.

Additionally, in the Q1 2024, during a period of sluggish performance by tax authorities, fiscal authorities resorted to citing restitution as an excuse, distorting the realities of the prevailing economic conditions.

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