Government Targets Tax Potential from Shadow Economy and Online Gaming

JAKARTA. The government plans to tap into the tax potential of the underground economy, often referred to as the shadow economy, as well as online gaming.

Deputy Finance Minister Anggito Abimanyu stated that one of the targeted underground activities is gambling in various forms, including online gambling or gambling related to soccer matches.

According to Abimanyu, as quoted by Bisnis.com, the tax revenue potential from these economic activities is substantial. "When they win, it adds to income tax," he said on Monday (10/28).

This plan was also discussed by President Prabowo Subianto during a retreat in Magelang last week. In that meeting, Abimanyu noted that the potential tax revenue from the shadow economy is significant.

Until now, income from these activities has largely been beyond the reach of taxation. On the other hand, the government hopes to increase tax revenue.

According to the Financial Transaction Reports and Analysis Center (PPATK), the shadow economy in Indonesia is estimated to account for 30%-40% of the country’s Gross Domestic Product (GDP).

To address this, the government is currently developing policy formulas that can be implemented for the underground economy and online gaming activities. (ASP/KEN)