The government and the Indonesian House of Representatives have agreed to target tax revenues in 2024 of Rp1,988.9 trillion or experience a growth of 9.4% compared to the 2023 target of Rp1,818.2 trillion (based on Presidential Regulation 75 of 2023). This target has been enacted by Law Number 19 of 2023 concerning the State Revenue and Expenditure Budget for the 2024 Fiscal Year.
The 2024 target is in line with the projection of economic growth in Indonesia and the world which is a reference from various international institutions such as the World Bank and the IMF, and is supported by various more optimal tax policies. Efforts to achieve tax targets next year are not easy. There are several challenges that need attention, including increasingly heated geopolitical tensions. The unfinished war between Russia and Ukraine, followed by the war between Israel and Hamas, are challenges for efforts to achieve tax targets next year. Tensions between the United States (US) and China also deserve attention because they will affect global trade. Another challenge that has emerged is the impact of climate change which is already visible now with droughts everywhere and triggering a long-term food crisis. Then, no less complicated is the very rapid development of digitalization.
More optimal tax policies that will be implemented to realize the 2024 tax revenue target include:
- Expansion of the tax base as a follow-up to the Tax Regulation Harmonization Law through the follow-up to the Voluntary Disclosure Program.
- Implementation of NIK as NPWP.
- Strengthening tax extensification activities.
- Targeted and regional-based supervision through the implementation of the preparation of the Priority Target List for Tax Revenue Security.
- Priority supervision of High Wealth Individual (HWI) taxpayers along with group taxpayers, affiliated transactions, and the digital economy.
- Continuing tax reform with the implementation of the Core Tax Administration System (CTAS). Through the implementation of CTAS, it is hoped that the information system and business processes of the Directorate General of Taxes (DGT) can be increasingly integrated and reliable so that DGT becomes a strong, credible, and accountable state revenue institution.
One of the targeted and priority supervision efforts is supervision of HWI taxpayers along with group taxpayers, affiliated transactions, and the digital economy. Of course, the main object of concern is the availability of tax data and information.
So far, the government, in this case DGT, has continued to improve its administration system and regulatory certainty to expand the tax database and information. The government has the authority to request financial data in the form of financial reports, evidence, or information from financial service institutions, such as banking, capital markets, insurance, or other financial services based on Law Number 9 of 2017 concerning the Stipulation of Perppu Number 1 of 2017 concerning Access to Financial Information for Tax Purposes into Law, which data is routinely received by the DGT every April.
All Agencies, Institutions, Associations, and Other Parties (ILAP) also send tax-related data periodically to the DGT which is received every month, every semester or every year depending on the type of data. Not only that, the Indonesian Government also actively participates in the automatic data exchange (AEOI) with many jurisdictions in the world, currently recorded more than 100 participating jurisdictions (inbound), and reporting destination jurisdictions (outbound) received every September. https://orbid.id/
