Many Palm Oil Companies Found Without Tax ID NUmber, Government Reports

JAKARTA. Amid efforts to improve taxpayer compliance, the government revealed that many palm oil companies do not have a Taxpayer Identification Number (TIN).

This shows that there are still many tax potentials that the government still needs to explore. Due to the impact of not having a TIN, these companies cannot pay Income Tax.

"If you don't have a Tax ID number, all corporate income tax cannot be collected," said Luhut as quoted from his social media account @luhut.pandjaitan, Thursday (11/7).

According to the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan, in the future, the government will optimize the role of digital technology to explore taxation potential.

Therefore, the government is developing the Mineral and Coal Information System of Ministries/Agencies (Simbara) , which was previously launched.

So far, this system has only integrated the management of various commodities, such as coal, nickel and tin. However, it will later be expanded to include palm oil management.

With the digital integrated information system, Luhut believes that tax revenue will also be boosted. As an illustration, during the first semester of 2024, the realization of corporate income tax revenue contracted by 34.5% to IDR 172.66 trillion.

Then, as quoted by Bisnis.com, specifically corporate income tax revenue from palm oil companies until the first semester of 2024 was recorded at only IDR 8.6 trillion or down 8.8% from the same period last year. (ASP)