YOGYAKARTA The tax rate and tax ratio emerged after the tax theme was mentioned in the inaugural Vice Presidential Candidate Debate (Cawapres) which was held on Friday, December 22, 2023. In the debate, Mahfud MD, who is the Vice Presidential Candidate number 3, gave a response to Gibran Rakabuming Raka, who is the number 2 Cawapres regarding the tax ratio target.

On this occasion, Mahfud MD questioned the high target of the tax ratio included in Gibran's vision and mission. The reason is that the country's economic growth must be able to reach 10 percent in order to meet Gibran's target.

Apart from the debate, the public needs to know the difference in tax rates and tax ratios. Although related to taxes, both have different understandings.

Quoted from various sources, the tax rate itself is a term used in the discussion of tax rates. The term tax rate can be interpreted as the tax rate imposed by the current Government.

Quoting investors, the tax rate or tax rate is interpreted as a percentage where a person or company's income will be taxed by the state.

Both in Indonesia and in other countries, the tax rate will indeed be imposed in the form of money that must be paid by taxpayers, both from salaries, investment income, main investment income, benefits for products and services sold, and much more.

Meanwhile, the sense of tax ratio or tax ratio in general is the measure used to find out a country's tax revenues. Simply put, the term is used as an overview of the tax condition of a country.

As is known, the term tax ratio had surfaced after being mentioned in the inaugural debate of the vice president. On this occasion Mahfud MD questioned the tax ratio target included in the vision-mission of Gibran's vice presidential candidate which was considered too high, which was 23 percent. On the other hand, people do not want to take tax incentives.

"In our simulation, the figure almost doesn't make sense because growth can be 10. Even though so far economic growth is 5-6 like that. How do you want to raise taxes? People with tax incentives don't take it?" asked Mahfud MD.

Responding to this, Gibran explained that raising taxes is different by increasing the tax ratio. Gibran said that one of the steps to increase the tax ratio was the formation of a tax revenue agency chaired by the President directly to facilitate coordination.

"DJP and Customs and Excise are merged into one so that the focus on state revenues will no longer be on spending issues," he explained.

In addition, Gibran also said that digitalization is important. According to him, now there is a system but it needs improvement again in order to facilitate tax services.

"Later, when we report the annual SPT, we will no longer need to fill in and calculate because the system is prepopulated, so we just click, click, click," he explained.

On the other hand, Ganjar believes that tax digitization can increase the RI tax ratio.

That's information related to different tax rates and tax ratios. Visit VOI.ID to get other interesting information.


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