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Good citizens pay taxes, gov't says

Jakarta Globe - April 26, 2024

Thomas E. Harefa, Jakarta – Deputy Finance Minister Suahasil Nazara recently said that a good citizenship meant paying taxes, as the money would go into advancing the country's development.

"So if you feel like you are being chased around by the tax office, [remember this]. Being a good citizen means creating economic activities, and the government is given a mandate to provide public services," Suahasil said at the recent Investor Daily Roundtable discussions at eL Hotel Royale, Bandung.

By "public service", this includes developing infrastructure as well as protecting the people in need, according to Suahasil. The money also goes into the education and healthcare sectors, which will also benefit the people in the end.

The government reported that the country's tax ratio stood at 10.2 percent, with the tax revenue reaching Rp 2,100 trillion. Suahasil said many analysts found Indonesia's tax ratio much smaller compared to that of neighboring countries or members of the Organization for Economic Co-operation and Development (OECD). He added: "That is why we are not only doing tax intensification, but we are also expanding our tax base."

To this end, the government is trying to spur new centers of economic activities, among others, through digitalization. Micro, small and medium enterprises (MSMEs) are also a good source of economic growth, as they mainly use domestically produced goods.

"The key is domestically produced goods. Higher domestic production will lead to a large multiplier effect. We should also develop our green economy for a new source of growth," Suahasil said.

Source: https://jakartaglobe.id/business/good-citizens-pay-taxes-govt-say