Indonesian govt pushes tax reform to expand revenue base amid global pressures
Jakarta, Thekabarnews.com—The Indonesian government has said again that it is important to broaden the tax base. This will change how the government makes money. Political pressure from all over the...
Jakarta, Thekabarnews.com—The Indonesian government has said again that it is important to broaden the tax base. This will change how the government makes money. Political pressure from all over the world is still making it difficult to keep the economy stable.
The Deputy Finance Minister, Juda Agung, says that the country’s finances will not stay healthy if they rely solely on traditional sources of income. He spoke at a Tax Training Center (Pusdiklat Pajak) event on April 8. He said that paying taxes should be straightforward for everyone.
“We can’t keep getting money from the same place, especially since things have gotten worse and changed since 2022,” Juda said, as quoted in Kontan.
He said that the world’s ongoing problems, such as tensions between countries and economic issues, have made it harder for governments to keep track of their money. Therefore, policymakers must update their plans. This ensures they sustain consistent income.
The Indonesian government wants to ensure that more people pay their taxes in a fair and equal way. This entails exploring new sectors of the economy and activities that have yet to receive full taxation. For example, the digital economy changes quickly.
Juda says that there are other ways to make it easier to pay taxes than just raising them. Getting more people to join in and obey the rules is also important. The government wants to make the economy more stable by taking advantage of new business opportunities.
Indonesia, like many other countries, is under more and more pressure to achieve a balance between making money and spending it. The government still needs to spend money on things like getting the economy back on track. It also has to spend on building roads and running social programs. In addition, since things have been going wrong all over the world, this trend is especially true.
The public says that getting more people to pay taxes is a big step toward not having to rely on just a few sources of income. Putting money into different kinds of assets can help protect you from outside shocks. For example, it can help with changes in the prices of commodities and problems with the global financial system.
They also talk about how important it is to ensure that tax changes are fair and do not put too much of a burden on some groups, such as low-income families or small businesses. Otherwise, such changes could exacerbate economic inequality. To maintain people’s trust, policies need to be clear, and communication needs to be effective
The government will keep changing the tax system, but it will also ensure that everyone has the same amount of money and that the economy keeps growing.
Officials should work on improving tax collection, using digital systems more, and making enforcement stronger. This will ensure that the tax system is efficient, equitable, and capable of supporting economic growth while maintaining public trust.
Indonesia is reforming its tax system to strengthen fiscal stability and improve resilience to economic changes. These steps will succeed if policymakers strike the right balance between growth, fairness, and long-term sustainability.
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