Indonesia's Tax System Faces Criticism for Lack of Direction

Fragile Tax Infrastructure Highlighted by INTAC

The Indonesian tax system is facing significant criticism from Indonesia Tax Care (INTAC), a watchdog organization focused on tax reform. Basuki Widodo, Executive Director of INTAC, has described the current tax infrastructure as fragile and lacking clear direction. The criticism was made during a recent meeting with Commission XI of the DPR (People's Representative Council) in Jakarta.

Key Issues in Tax Administration

Basuki identified two primary factors contributing to the fragility of Indonesia's tax system. Firstly, he pointed out the neglect of the self-assessment principle, which is fundamental to tax collection in Indonesia. Secondly, he noted that the tax system fails to align with the broader ideals of national taxation, which are essential for fostering a fair and effective tax environment.

Path Forward for Tax Reform

To address these issues, Basuki suggested that the tax authorities need to adopt a more proactive approach. This includes better guidance and support for taxpayers to help them fulfill their tax obligations. Additionally, he emphasized the need for tax officials to perform their duties with integrity and professionalism. By implementing these measures, Indonesia can work towards a more robust and equitable tax system that supports national development goals.