The Chairman Of The DEN Calls Compliance With Community Tax Paying Very Low

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan (center). (Photo: Aris Nurjani/VOI)

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan said the taxpayer's compliance with paying taxes was still relatively low.

Luhut gave an example, of the total ownership value of cars and motorcycles which reached more than 100 million units, there were only about 50 percent who paid taxes.

"That's for example, yes, there are cars and motorbikes, maybe more than 100 million, only 50 percent pay taxes. So you can imagine that our compliance is very low," he said at the Press Conference, Thursday, January 9.

Therefore, Luhut explained, the DEN specifically provides full support to the Directorate General of Taxes at the Ministry of Finance in implementing Core Tax which is the backbone of national tax reform.

According to Luhut, this system will increase taxpayer compliance, so as to increase state revenue.

In addition, Luhut said the system could increase taxpayer compliance so that it would increase the potential for state revenue by around Rp. 1,500 trillion and from this potential, around Rp. 1,200 trillion could be collected in stages.

Luhut said that there had been directions from President Prabowo Subianto regarding tax proceeds to strategic sectors such as MSMEs.

"Earlier, Rp. 1,500 trillion, we assume that we can collect Rp. 1,200 trillion in stages. That President has ordered that he will continue to allocate it to MSMEs to encourage that, what is it called, purchasing power rather than the lower middle class," he said.

He emphasized that digitization is not only a solution to increase efficiency, but also an important step to build public trust in governance.

"We fully support the implementation of the graffiti and other digitalization programs to ensure that every policy provides real benefits to society," he said.