Airlangga Optimistic Tax Ratio Increases 12 Percent

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto is optimistic that the implementation of the Core Tax Administration System (CTAS) system prepared by the Ministry of Finance through the Directorate General of Taxes (DJP) will increase Indonesia's tax ratio.

Airlangga estimates that with the Core Tax system, the tax ratio will increase by about 12 percent from Gross Domestic Product (GDP).

"The tax ratio is targeted to be increased back to 12 percent of income. Yes, of course, we must also pursue higher income and one of the things that is also prepared at the Ministry of Finance is digitization with graffiti," said Airlangga at the Coordinating Ministry for Economic Affairs Anniversary Celebration. 58th, Thursday, July 25.

Airlangga hopes that the implementation of the latest tax system can be implemented by the end of 2024.

"The tax beliax system is expected to be on by the end of this year," he said.

For information, through the Macroeconomic Framework and the 2025 Fiscal Policy Principles (KEM-PPKF), the government is targeting a tax ratio of 10.09 percent to 10.29 percent of gross domestic product (GDP) next year.

"Through these fiscal reforms, it is hoped that the tax ratio will continue to increase and spending that is more quality will be reflected in primary balance leading to positive, controlled deficits, and debt ratios within the manageable limit," the document reads.

The technical tax policy in 2025 is technology integration in order to strengthen the tax system by continuing the implementation of the Core Tax Administration System (CTAS) in tax administration management and compiling a Risk-based Tax Revenue Priority Priority Target List (DSP4).

For information, in recent years, Indonesia's tax ratio is still fluctuating.

In 2018 at 10.24 percent, in 2019 it was 9.76 percent, in 2020 it was 8.33 percent, in 2021 it was 9.11 percent and in 2022 it was 10.38 percent.