Tax Reform Can Lower National Tax Difference to Normal Level – Finance Minister Sri Mulyani Indrawati stated that tax reform has the potential to reduce tax gap or the difference in Indonesian taxes to normal or relatively global levels.

Benchmark tax gap especially for OECD countries and developing countries is around 3.6 percent. While Indonesia tax gapis 8.5 percent.

“Indonesia’s ability tocollect taxation at 9.76, and there tax gap 8.5 percent. Tax gap normal in other countries 3.6. So we actually have potential tax gap which must be reduced by close to 5 percent of GDP,” said Sri Mulyani in a virtual working meeting with Commission XI of the DPR, Monday (28/6/2021).

Tax reform itself consists of reforms in the fields of policy and administration. From a policy perspective by looking at the tax base; competitiveness of the economy and between countries; the provision of incentives must be measurable, efficient, and adaptive; reduce distortion and exemption; improve tax progressivity.

Also Read: Sri Mulyani’s reason for insisting on revising the Law on General Provisions on Tax Procedures

Meanwhile, in terms of administration, reform will make administration simple, easy, and efficient; provide legal certainty; utilize data and information to create justice; follow the trend as well best practice global.

The concept of tax reform will be discussed further with the DPR and will of course listen to input from all stakeholders.

Source: – Kumpulan Berita Bisnis Hari Ini Yang Terbaru by

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