The Indonesian government remains steadfast in its commitment to enhancing public services across various sectors. One pivotal area that has come under the spotlight for substantial improvement is the domain of tax payments. Minister of Finance, Sri Mulyani, envisions a future where the act of paying taxes for Indonesian citizens is as effortless as acquiring mobile phone credit.
According to a report from Antara on Monday, dated August 7, 2023, this visionary goal, as outlined by Sri Mulyani, hinges on the strategic reform of tax payments procedure through the establishment of a sophisticated core tax administration system. This system, if effectively executed, is anticipated to mirror the simplicity of topping up mobile phone credit and aims to streamline the tax payment process to the level of everyday financial transactions.
Sri Mulyani elaborated on this aspiration during the Sympathetic Tax Campaign Spectaxcular 2023 event, held in Jakarta on Sunday, August 7, 2023. She emphasized that the realization of such an ambitious plan necessitates not only a simplification of the procedures but also an enhancement in communication to ensure that citizens have a clear understanding of their tax obligations.
The Finance Minister conveyed that taxes should be perceived as an integral civic duty rather than a daunting task. Within her framework, taxes are a fundamental responsibility that every citizen must fulfill, contributing to the nation’s growth and stability. She further iterated that the process of tax payment should not involve unwarranted complexities and frustrations.
A significant development recently undertaken by the Directorate General of Taxes involves the revision of regulations governing tax overpayment refunds, specifically for individual taxpayers with refunds below Rp100 million. This alteration brings about a considerable reduction in the time taken for restitution requests.
The previous window of up to 1 year has now been replaced with a more efficient timeline of a maximum of 15 working days, enabled by the new regulation PER-5.PJ/2023.
Underpinning these reforms is a broader effort to provide an environment of ease and security for taxpayers. This initiative aligns with the Ministry of Finance’s overarching mission to facilitate better financial literacy and foster a sense of responsibility among the citizenry regarding their tax obligations.
Director General of Taxes, Suryo Utomo, delved into the core tax administration system, elucidating its intricate mechanisms. Through this system, all relevant data pertaining to deductions from employers and entities responsible for tax withholding (Article 21, 22, and 23), as well as transactions subject to Value Added Tax (VAT) by third parties, is consolidated.
This comprehensive dataset serves as the foundation for the Annual Tax Return (SPT) and is designed to simplify the tax reporting process for taxpayers.
As the core tax administration system is being meticulously assembled, Suryo affirms that the Directorate General of Taxes is gathering an array of data integral to the annual tax return process. The overarching goal is to expedite the implementation of the system, with aspirations of full integration by 2024.
This streamlined integration aims to empower taxpayers with a comprehensive platform that not only simplifies their tax-related responsibilities but also supports the broader national objective of economic stability and growth.
