Jakarta, CNBC Indonesia – The Prabowo-Gibran National Campaign Team expressed its seriousness in establishing a State Revenue Agency (BPN). TKN believes that the existence of this agency can increase the tax ratio, as well as make tax payments cheaper.

“In my opinion, BPN is very, very important, because in terms of its character it really focuses on state revenues, no longer focused on expenditure,” said Deputy Chairman of TKN Prabowo-Gibran, Eddy Soeparno in the Your Money Your Vote event on CNBC Indonesia, Wednesday (15 /11/2023).

Eddy said Indonesia’s potential to increase the ratio of taxes to Gross Domestic Product is very high. He said only 30% of Indonesians have a Taxpayer Identification Number (NPWP).

“Currently only 30% of those who have NPWP have the obligation, so tax extensification must of course be carried out to reveal those who are still hiding,” he said.

The National Mandate Party politician said that later a tax revenue agency would be formed by combining the Directorate General of Taxes and Customs and Excise in one institution. The agency will report directly to the president. This agency will focus on increasing the ratio of taxes, non-tax state revenues (PNBP) and grants.

“What is the focus? Expansion and intensification of looking for those who are hiding, those who are not honest,” he said.

“And I think the potential is huge, with extensification and intensification, including improving human resources and digitizing the tax system,” continued Eddy.

Eddy said that people who are already obedient in paying taxes do not need to worry about the existence of this institution. According to him, when the tax ratio is successfully increased, the government can also reduce the tax rate.

“There is no need for the public or obedient taxpayers to worry, it is possible to increase the tax ratio by simultaneously reducing the tax rate, for example VAT (value added tax) of 12%, we will reduce it to 10%,” he said.

Previously, Prabowo, at the 100 Indonesian Economists Workshop, Wednesday (11/11/2023) explained that Indonesia’s tax ratio lags behind many countries in ASEAN, even Cambodia and Vietnam.

According to Prabowo’s notes, the ratio of taxation to Gross Domestic Product (GDP) or tax ratio to GDP in Indonesia is 9.1%. This figure is far below Cambodia (18.4%) and Vietnam (12.3%).

“I ask now as sons and daughters of Indonesia what is the difference between us and Cambodians, what is the difference between us and Vietnamese people. Are Indonesians more stupid or more incompetent? I think this is a management problem,” said Prabowo at the 100 Indonesian Economists Workshop organized by INDEF and CNBC Indonesia, Wednesday (8/11/2023), Wednesday (11/11/2023)

The Minister of Defense explained that Indonesia’s tax ratio should be much better if there was better tax management, including the technological system. “We can calculate that 8% of US$ 1,500 billion is quite a significant increase and with that we can invest in more than just food self-sufficiency,” he said.

[Gambas:Video CNBC]

(haa/haa)