JAKARTA. The government has set a target for the ratio of tax revenue to Gross Domestic Product (GDP) or Tax Ratio in 2025 to be in the range of 10.09%-10.29%.
The target is contained in the 2025 Macro Economic Framework and Fiscal Policy Principles (KEM-PPKF) document that was submitted to the House of Representatives (DPR) on Monday (20/5). This document will serve as the government's basis for drafting the 2025 State Budget and Revenue Plan (RAPBN).
The publication also reveals some tax policies that the government will carry out in 2025 to achieve the set targets. First, by expanding the tax base through intensification and extensification efforts.
Second, encouraging the level of compliance through the use of tax system technology, expanding synergies, joint programs and law enforcement. Third, maintaining the effectiveness of tax reform implementation and harmonization of international tax policies.
Fourth, providing targeted and measurable tax incentives to support business climate and competitiveness. Fifth, encourage the strengthening of human resources (HR) in line with economic dynamics.
In detail, the government also mentioned several technical efforts to boost tax revenue. For example, continuing the implementation of the Core Tax Administration System (CTAS), strengthening the tax base through intensification and extensification by increasing the number of taxpayers, expanding tax education, and strengthening supervisory activities.
In conducting supervision, the government will focus on High Wealth Individual (HWI) Taxpayers along with Group Taxpayers, affiliated transactions, and the digital economy. Then conduct law enforcement through increasing international tax cooperation and utilizing digital forensics.
With the tax revenue target set, the government hopes that the state budget deficit can be at the level of 2.45% to 2.82% of GDP. The deficit target assumes that state expenditure is at the level of 14.59%-15.18% of GDP. (ASP/KEN)
