The Directorate General of Taxation will strengthen its data bank in order to cover more data on individual taxpayers (WPOP). Director General of Taxation, M.Tjiptardjo, explained that one way is to add Article 36A in the General Provisions and Procedures of Taxation that obliges all institutions to submit data to the Directorate General of Taxation and to improve their information technology system.” Many steps are under preparation, the human resources are improved, and those who commit violations will be punished”, said the Director General of Taxation.
Based on data of the Directorate General of Taxation, tax revenues from individual taxpayers will be increased this year since there is potential loss as a result of shift of revenue from land building acquisition tax (BPHTB) and exit tax. “ there is a potential which is not yet cultivated properly. So, we will pursue individual taxpayers is still low”, said Tjiptardjo.
One of the factors that cause distorted achievement of a number of targets of the Directorate General of Taxation is the Gayus case that it encourages the Directorate General of Taxation to perform internal improvement. Institute for Development of Economic and Finance’s (INDEF’s) Analysis.
Disobedience of the middle to high class society is one of the reasons of low tax revenue. Currently, the number of middle-class society who is obedient in playing taxes is only around 10 percent. This matter is conveyed by INDED’s political observer, Denny Adi Purwanto.” The relatively low tax revenue is due to low tax base. The number of obedient taxpayers is very low, and the number of Indonesia rich and middle class society who is tax-obedient is only around 10 percent.”
The effort to increase of tax revenue should be done by increasing the number of individual taxpayers. And, the government must also maintain growth momentum, because if economic growth is high, tax revenue will increase.
INDEF is in the opinion that tax instrument is like a double-edged blade. If efforts to increase tax revenue through tax intensification and extensification could not be implemented effectively, it will be counter-productive to the economy.” High tax burden will kill business operator and will finally unable to give contribution to tax payments. But, if the government gives tax incentive, at the beginning, it will reduce potential tax revenue, but if it is able to jumpstart industrial growth it will be potential to increase revenue in the long run.