Indonesia to Evaluate Tax Restitution Scheme Amid Revenue Pressure

Ministry of Finance to Assess Fiscal Impact

The Indonesian Ministry of Finance has announced plans to evaluate the current tax restitution scheme due to its substantial impact on state revenue. Director General of Economic and Fiscal Strategy, Febrio Nathan Kacaribu, emphasized that while tax restitution is a right guaranteed by law for taxpayers, the government will conduct periodic assessments of its fiscal implications.

Fiscal Concerns Driving Evaluation

The decision to evaluate the tax restitution scheme comes amid growing concerns over its effect on state revenue. Kacaribu noted that in recent years, the government has observed significant fiscal consequences arising from various policies. One notable example is the impact of the Job Creation Law on the coal sector, which has resulted in considerable revenue implications.

Periodic Assessment and Potential Adjustments

Kacaribu assured that the evaluation of the tax restitution policy is part of the government's regular review process. "We will definitely review and evaluate it every year," he stated during a media interaction in Jakarta. This ongoing assessment aims to ensure that the policy remains effective and does not adversely affect state revenue. The government remains committed to balancing taxpayer rights with fiscal responsibility.