Breaking curse of Indonesia’s tax revenue shortfall – Opinion

Breaking curse of Indonesia

Another year, another attempt, another failure in collecting tax.
Despite numerous tweaks and improvements over the last two decades, Indonesia’s tax administration has failed to generate a sustainable and meaningful increase in tax revenue over and above the pre-2000 levels.
From conventional strategies — restructuring the organization, modernizing IT systems, developing data infrastructure — to high and risky moves like lowering tax rates, granting tax amnesties and offering tax incentives, all have been tried in the past 20 years. Yet, our tax administration is still performing poorly, is still a constant source of late-year anxiety for the government and is still a specter hanging over our economy.
So what is wrong in our tax administration?
Almost universally, the answer is low compliance. Compliance improvement has been the perpetual goal of the Indone…

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.

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