Tax Base

Jun 11th, 2007, in Business & Economy, by

Indonesians don’t pay their taxes.

In a country of over 220 million people the number of individual taxpayers stands at only 3.3 million, and only 2.9 million of these people regularly paid tax, said Darmin Nasution, the director general of taxation, on 6th June.

Darmin reckoned that, given a population of 220 million, the number of taxpayers should be between 20 and 25 million.

Darmin Nasution
Darmin Nasution, smiling tax man.

Each year 200,000 to 300,000 people obtain a tax file number (NPWP) and begin submitting monthly tax returns for the first time, or most of them do. Darmin said that the low rate of increase in taxpayer numbers was due to the poor standards of service and reach of the Tax Office, and the peoples’ unwillingness to pay taxes. He promised, or threatened: antara

We will improve our services, provide facilities and develop a database and administration system.

8 Comments on “Tax Base”

  1. Rani says:

    Ah, this guy is the one who was caught with porns in his flashdisk, no? As in this news report?

  2. Sputjam says:

    If the rich do not pay taxes, there will be no money to improve the poor. The role of the government is to distribute the money obtain in taxes and to manage the country efficiently. But over taxing the rich will cause them to leave the country and take their money elsewhere.
    Glad I am not in charge.

  3. Abdul Khalid al Jumhuri says:

    Let me brag a little. Although I am not that rich I am glad that I paid my income taxes and have the Indonesian tax number since 1990! At the very least I have a good conscience and could sleep tight.

  4. Bas says:

    I wonder if Abdul Khalid is really paying what he should pay. 😛

  5. ddmt says:

    The problem with taxation system in Indonesia IMHO is the level of fairness, not everyone is paying tax. And even if they do, those taxpayers don’t pay the rate that they should really pay, and the funny thing is if you do you’ll be in trouble 🙂

    And last not least, the taxation department is full of corrupted staff members 🙂

  6. Arema says:

    Indonesians don’t pay their taxes

    Why should they? There are more than enough reasons not to pay:
    1) The tax money flow to someone’s pocket instead of used for people’s prosperity
    2) It’s very easy to bribe and pay much lesser money overall. In fact it is encouraged by the tax officials
    3) As Rani has spotted out brilliantly, if you got a leader with zero credibility, the confidence level of the people dived to below zero, and this will link back to point (1)

    Darmin Nasution: We will improve our services, provide facilities and develop a database and administration system

    Good. It better be true. And before that, improve your department’s integrity first.

  7. Raka says:

    I just wondering, when whe asking tax regulation (PMK, PER, SE and Tax Law)or tax case to tax officer we sometimes get “grey answer”. They should have capabilities and also compentencies to handle tax matter.

    If we, as tax payer do not understand what the tax regulation really means then when we asking to the tax officer get “unclear answer” to whom we should address our question?

    DGT should socialize the the tax regulation properly

    Thank you

  8. Ajeng says:

    I was just wondering what is the guarantee for us (Indonesian people) if our taxes will be use accordingly for our prosperity and the country of Indonesia? We don’t pay taxes due to :
    1. We don’t know where the money goes
    2. Many people in Indonesia are struggle to fight for their own life and now taxes are required.
    3. Starting 2009 when we required to pay taxes, we hope that within 1-2 years public transportation, street, government care will be improve accordingly.

    thanks and need a clear explanation to gain people’s confidences.

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