The Contribution Of Income Tax Is Still Low, The Government Is Disbursing Tax Socialization And Literacy For MSMEs

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA The government through the Ministry of Finance (Kemenkeu) revealed that the contribution of the final PPh of MSMEs in the 2019 period was IDR 7.5 trillion. This figure is only 1.1 percent of the total tax revenue in the same year. Director of Counseling, Services, and Public Relations of the Directorate General of Taxes of the Ministry of Finance Neilmaldrin Noor said that the low contribution of MSMEs to state revenue was due to low literacy and understanding of tax calculations. Even though they have a high level of awareness of tax compliance and importance of paying taxes. In fact, the brand also stated that they are ready to follow the policies and tax incentives given by the government to MSME actors, he said in an official statement on Monday, November 21. According to Neilmaldrin, his party will continue to carry out various strategies and efforts to improve tax literacy for MSMEs. One that is now the focus is through collaboration with tax centers in higher education. It is at this tax center that the Directorate General of Taxes involves students becoming tax volunteers who are tasked with providing tax education and helping to fill the SPT of taxpayers (WPs), including MSMEs, he said. Sri Mulyani's subordinates also added, the government also organized a special Business Development Services (BDS) program that serves as a media workshop, entrepreneurship training, seminars, thematic tax classes, as well as information and assistance services to MSMEs. In the future, the Directorate General of Taxes will collaborate with digital platform actors such as marketplaces, we know that the majority of sellers at online sites are MSMEs. For this reason, education is also needed, both to its platforms and its MSMEs,he stressed. On the same occasion, the General Chairperson of MSMEs Make Class Raden Tedy explained that many people's business players who have not developed significantly, as not known how to make financial reports to take care of licensing. The low number of tax participation from the MSME sector can be due to their lack of ability and knowledge about taxation,'' he said.

Similarly, Gunadarma University Tax Center Head Beny Susanti said that before talking further about the levy cutting mechanism, the government should first fulfill the main rights of MSMEs, namely obtaining literacy and education about the tax system.

MSMEs don't want to pay taxes, but there are other factors, such as systems or find it difficult to understand. Maybe we've heard the expression, what can I get if I pay taxes? Well, this is where the education needs to be conveyed clearly and massively," said Beny.

To note, the research quoted by the Ministry of Finance stated that the lack of literacy and knowledge resulted in 61 percent of MSMEs not taking advantage of the final PPh facility of 0.5 percent. Meanwhile, the government through the Ministry of Finance previously has also made a number of policies so that state revenues through MSMEs can be absorbed optimally.

For example, Government Regulation (PP) No. 23 of 2018 which provides special tax regulations for MSMEs. Here, populist sector entrepreneurs can enjoy a reduction in income tax rates (PPh) final MSMEs from the previous 1 percent to 0.5 percent based on gross income.

In addition, the government has also exempted PPh for individual MSMEs with income below IDR 500 million per year through the Law on Harmonization of Tax Regulations (UU HPP).