Don't Be Grand About Numbers, This Is The Government's Realistic Target For Enforcement Of The HPP Law

Expert Staff for Macroeconomics and International Finance of the Ministry of Finance Wempi Saputra (Photo: Screenshot of MNC's virtual channel

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that the current implementation of the Law on the Harmonization of Tax Regulations (HPP) is not targeted at achieving a certain increase in revenue.

"We can't predict numbers right away, but the government is confident that the achievement of the 2022 tax revenue target will be better," said Expert Staff for Macroeconomics and International Finance at the Ministry of Finance Wempi Saputra through a virtual channel at the MNC Investor Forum, Thursday, March 17.

According to him, the renewal of a number of tax regulations which are summarized in the HPP Law is a long-term plan that is expected to have a strong influence on the tax base in the country.

"The tax transformation program does not immediately have an instant impact in the short term, but we are currently more focused on how to strengthen the tax base foundation, optimize billing quality, and carry out strategic developments," he said.

Furthermore, Sri Mulyani's subordinate explained that this latest regulation also provides an opportunity for business actors to continue to develop their business through a number of facilities provided by the government.

"We also provide tax incentives for the business world which of course is expected to bring the sector to develop, so that in the future they can contribute higher taxes," he said.

For information, the HPP Law itself consists of six regulatory scopes, namely General Provisions and Tax Procedures (KUP), Income Tax (PPh), Value Added Tax (PPN), Voluntary Disclosure Program (PPS), Carbon Tax, and excise duty.

This regulation is also a concrete step for the government in achieving the target of the APBN deficit to return to a level below 3 percent of gross domestic product (GDP) in 2023 after the countercyclical policy at the beginning of the pandemic.

Meanwhile, the performance of the state budget at the beginning of this year showed an encouraging trend by recording a budget surplus of IDR 28.9 trillion in January 2022.

Likewise with the achievement in 2021 which recorded state revenues of Rp.2,003 trillion or 114.9 percent of the APBN target of Rp.1,743.6 trillion.

Meanwhile, for 2022, state revenue is targeted to reach IDR 1,846.1 trillion, with details of tax revenues of IDR 1,265 trillion, customs and excise of IDR 245 trillion, and non-tax state revenues (PNBP) of 335.6 trillion.