Deputy Minister Of Finance Suahasil: Taxes Not To Disadvantage But To Build Countries

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the government's efforts to collect tax revenues contained an understanding as an effort to grow the economy.

"If we collect taxes, it does not mean that we are suffering the economy, are reducing our economic capacity, reducing the ability of the community. But actually when we collect the tax, we are making this country able to build infrastructure, be able to spend salaries, be able to make investments," he said in an official statement quoted Wednesday, February 1.

According to Suahasil, the role of tax policies to encourage the economy can go through two channels. First, tax revenue is used for state spending. Second, taxes can also be an incentive instrument that has a positive impact on the economy.

"Maybe around Rp250 trillion in taxes or 1.5 percent of GDP we don't take it every year because it's an incentive. This figure is big and if it's not taken it actually has a good economic impact," he said.

Furthermore, the Deputy Minister of Finance asked his staff to continue to oversee the taxation sector and carry out their duties in an accountable and responsible manner.

"The tax will benefit from new sources of economic growth, but taxes must also think about how to develop the four sectors," he stressed.

VOI noted that the realization of tax revenue throughout 2022 was IDR 1,716.8 trillion. The score recorded an increase of 115.6 percent from the APBN ceiling which amounted to Rp1,485 trillion.