The Minister Of Trade Calls How To Increase Tax Ratio By Eradicating Illegal Imported Goods

Minister of Trade Zulkifli Hasan. (Photo: Mery Handayani/VOI)

JAKARTA - The Minister of Trade (Mendag) Zulkifli Hasan said that one way to increase Indonesia's tax ratio by eradicating illegal imported goods in the country.

'Orient the underground economy or this underground economy. Orderly, pay taxes. Pay 35 percent. Tax ratio can go up. New taxes," he said during a speech at the Coordination Forum for Civil Servant Investigators (PPNS) for Central and Regional Trade, in Jakarta, Wednesday, August 21.

The man who is familiarly called Zulhas said that controlling the underground economy requires law enforcement support.

He said this law enforcement would determine its success.

"If we really want to increase the tax ratio, strengthen the domestic trade industry, law enforcement is very decisive," he said.

Reflecting on data from the Ministry of Cooperatives and SMEs (Kemenkop UKM), Zulhas said, illegal import activities had undermined the market share reaching 30 to 40 percent.

"The Minister of SMEs said almost 30 to 40 percent. So if 35 percent imagine, it's huge," he said.

According to him, this figure is quite high and should be able to increase Indonesia's tax ratio.

However, said Zulhas, because many individuals import illegal goods to avoid taxes, as a result, the tax ratio is still low at 10 percent on GDP.

Therefore, continued Zulhas, if the underground economy can be completed and the Indonesian tax ratio increases, then Indonesia can easily realize food self-sufficiency, increase the prosperity of farmers, MSMEs grow and the domestic industry will grow.

"But if it's like this, the industry can die. We can depend on imported rice later, imported electronics, imported soap, imported sugar, imported meat. Import shoes. Brushing teeth can be imported. What do we do? If that's the case. This is our country. We have been independent for 79 years. We must be able to become a developed country, "he said.

Zulhas admitted that he needed strong cooperation between agencies with the police, prosecutors' offices, customs, the Ministry of Finance, then the regents, governors and the public from reports of the existence of illegal imported goods.

"That's if we fix it, so we pay taxes in an orderly manner. Tax ratios can increase and the industry is protected because they both pay taxes. Both have standards, both have BPOM, both have halal, so they are equal," he explained.