Prabowo's Team Reveals The Potential For Corporate Income Tax To Drop To 20 Percent

Member of the Expert Council of TKN Prabowo-Gibran, Drajad Wibowo. (Photo: Doc. Antara)

JAKARTA - Member of the TKN Expert Council Prabowo-Gibran Drajad Wibowo revealed that the potential for lowering income tax rates (PPh) for agencies fell from 22 percent to 20 percent.

"We really want to reduce corporate income tax so as not to be too burdensome for the community," said Drajad after Indonesia Future Policy Dialogue activities in Jakarta, quoted from Antara, Thursday, October 10.

However, regarding the amount of the decline, Drajad said there had been no final decision because it would still consider the performance of state revenues.

"It's not specific yet, it's still a wish. But, we really want one day to be able to reduce corporate income tax," he said.

The plan comes amid the government's desire to increase the tax ratio from 12 percent to 23 percent.

In response, he stated that the greater tax rate did not necessarily boost state revenue. It could be that the opposite happened.

"It's the same as if we sell goods. People think that the price is higher, we get more money. Even though the price could be higher, people don't want to buy it. Finally, we block our receipt. It's the same with that," he said.

On a separate occasion, Deputy Chairman of the Gerindra Board of Trustees Hashim Djojohadikusumo said the Prabowo administration plans to reduce corporate income tax to 20 percent.

Hashim said that the low tax ratio in Indonesia was caused by the enforcement of rules that had not been optimal, so that the Prabowo government would later boost revenue through tax compliance.

"We will cover the leaks by not adding tax rates. We should reduce the 22 percent tax rate to 20 percent," he said.

In addition to the plan to adjust tax rates, Prabowo's economic team also made the State Revenue Agency (BPN) one of the solutions to boost state revenue.

BPN will be designed to contain three elements of transformation, namely institutional transformation, technology, and culture. The Prabowo team is optimistic that the formation of BPN can spur the acceleration of the transformation.