Prabowo-Gibran Is Considered To Need To Optimize Taxes From The Entertainment Sector

JAKARTA - Maximizing tax collection from subjects who are not yet optimal, such as the entertainment sector, it is very necessary to pay attention to the government of the elected president and vice president Prabowo Subianto and Gibran Rakabuming Raka. This assessment came from the Indonesian Center of Reform on Economics (CORE).

Executive Director of CORE Indonesia Mohammad Faisal stated that the upcoming government should not try to increase tax revenue by imposing more taxes on the manufacturing and consumption sectors, considering that there is now a weakening of purchasing power and a decrease in the Purchasing Managers' Index (PMI) Manufacturing.

"What should be done is targeting tax subjects who have not been maximal so far, for example taxes for entertainment, for high-class (communities), or large and multinational companies operating in Indonesia," he said, quoted from ANTARA, Saturday, October 19.

The upcoming government has launched in the Asta Cita document to extensify and intensify tax reforms to become more stimulant for the business world to increase competitiveness and investment in the real sector.

In addition to the tax subjects mentioned above, Mohammad Faisal also suggested that Prabowo-Gibran also optimize taxes from the digital economy sector because it is considered profitable.

"So it's not even a burden on the sectors that are currently in a condition that doesn't allow them to be added to the (tax) burden, yes, later it can backfire (backfire) for the economy," he said.

In the Asta Cita document, Prabowo-Gibran also pays great attention to the book industry and plans to provide incentives for the industry by removing VAT for all types of books and making book royalties tax final.

Faisal said that his party welcomed the tax relaxation plan. Even so, he highlighted the need for future governments to also relax taxes on a number of labor-intensive industries, such as the textile and footwear industry.

"It can be done by reducing VAT, you don't have to remove VAT. Other tax burdens also do not rule out reducing the possibility," he concluded.