Gather Rich People In North Sumatra, Sri Mulyani: Difficult To Enjoy Taxes Is Very Important

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

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said taxes are the main source of revenue as well as a very important instrument when the economy experiences a disaster such as a pandemic.

This was conveyed by the Minister of Finance in the socialization of the Law on the Harmonization of Tax Regulations (HPP) in Medan, North Sumatra, which was attended by prominent taxpayers (WP).

“So taxation is not always just to collect income. But he became a very important instrument for the state to be used in times of trouble as well as in times of joy. He is an instrument that helps the state, the people and the economy to achieve development goals and reach a just and prosperous society," he said on Friday, February 4.

According to the Minister of Finance, the ongoing pandemic has forced the role of the state budget to be flexible and responsive, such as providing social assistance, MSME capital support, as well as countercyclical aspects to reduce the pressure that occurs.

In detail, the state treasurer explained that during the tax and customs pandemic the support was in the form of fiscal incentives. Imports of various goods to deal with COVID-19 such as vaccines and PCR equipment all get import duty tax exemptions.

"Our state budget in terms of taxes is not just collecting taxes and then burdening the community, it doesn't. Taxes are often used as an instrument to provide incentives,” he said.

For this reason, the government, called the Minister of Finance, stipulates Law Number 7 of 2021 concerning HPP which seeks to encourage a fair, healthy, effective, and accountable taxation system.

"The HPP Law comes at the right momentum to strengthen tax reform through expanding the tax base, increasing voluntary compliance, improving tax governance and administration to realize a healthy and sustainable State Budget," concluded Minister of Finance Sri Mulyani.