Being Pursued By The State Revenue Target, Minister of Finance Sri Mulyani Adds Tax Service Offices

Finance Minister Sri Mulyani (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance continues to implement a series of strategic policies to increase tax revenues to reduce the deficit in the State Budget (APBN) that is widening due to the COVID-19 outbreak.

Minister of Finance Sri Mulyani said one of the efforts taken is to add Tax Service Offices (KPP) in various regions in Indonesia. Most recently, the Minister of Finance inaugurated 38 KPP to realize the increase in state revenue.

"The role of tax is very central in development. This year the tax is planned to deposit about 33.79 percent of the total state revenue", she said in an online broadcast, Monday, May 24.

According to the Minister of Finance, the role of the tax Service Officesis quite central in collecting tax levies. Because the establishment of the representative office becomes the spearhead of the government in ensuring the compliance of citizens in fulfilling tax obligations.

"This (tax service office) is important to address the impact of the COVID-19 pandemic", she said.

For information, this year the State Budget targets tax receipts of IDR 1,229.58 trillion. The figure is 14.69 percent greater than the realization of 2020 tax receipts recorded at IDR 1,072 trillion.

Therefore, continued the Minister of Finance, structuring, and reorganization in the Directorate General of Taxation (DJP) is a must. Moreover, the agenda has been mandated in PMK 184/2020 which is a renewal of PMK 210/2017.

"This arrangement is also part of the Strategic Plan of the Ministry of Finance for the period 2020-2014 which aims to secure tax receipts", she said.

To be known, the State Budget 2021 targeted state revenues of IDR 1,743 trillion, with spending IDR 2,750 trillion. This means that the budget deficit is recorded around IDR 1,000 trillion or equivalent to 5.7 percent of gross domestic product (GDP).

Meanwhile, in the draft State Budget 2022, it is known that the state revenue is around IDR 1,823 trillion and the shopping sector is IDR 2,631 trillion. From this estimate, it is found that the budget deficit will be in the range of 800 trillion or equivalent to 4.5 percent of GDP.