“President Wants Our Tax Ratio to be Pushed up to 15 Percent,” Seskab Says

Cabinet Secretary Pramono Anung delivers a press statement, after a Limited Meeting, at the Presidential Office, Jakarta, on Monday (12/3) afternoon

Cabinet Secretary Pramono Anung said that there are several things that have been agreed at the Limited Meeting on money laundering and tax evasion, lasted almost two hours, at the Presidential Office, Jakarta, on Monday (21/3) afternoon.

First, Cabinet Secretary added, President Joko Widodo asked Financial Transaction Reports and Analysis Center (PPATK), Directorate General of Taxation, Directorate General of Customs and Excise, as well as National Narcotics Agency (BNN) and National Counterterrorism Agency (BNPT) to use a joint data.

“It will be used as a benchmark to see a tax object. The data that will be used is mainly from Directorate General of Taxation as well as PPATK,” Pramono told the journalists after the meeting.

Second, the President instructed Minister of Finance and the apparatus of Directorate General of Taxation to immediately improve their current IT system and create an integrated system. Therefore, all parties involved will have the same data.

“With this integrated system, the Government believes, insya Allah, the tax ratio will increase. Since our tax ratio is still around 11 percent, the President wants it to be pushed more than 12-13 percent, even up to 15 percent,” Pramono said.

Regarding law enforcement, the Cabinet Secretary reminded that in 2018, taxation world will be widely open. He mentioned that the Government can trace the location where people stash their funds. Therefore, this is the right time for everyone who stashes their funds abroad to immediately coordinate with the Minister of Finance and Directorate General of Taxation, so that they will not get any problem in the future. (FID/RAH/ES)(MMB/YM/Naster)