Alfida Rizky Febrianna, Jakarta – Prabowo Subianto, as part of his electoral commitments, promises to separate the Tax Directorate from the Finance Ministry to maximize state revenues, a campaign staffer said on Friday.
Edy Slamet Irianto, an economic advisor within the campaign team, said that Prabowo intends to transform the Tax Directorate into a distinct entity known as the National Revenue Agency.
This plan stems from the fact that the national tax reforms since 1983 have not successfully elevated the tax-to-GDP ratio to at least 15 percent – the threshold recommended by the World Bank that could stimulate economic growth and diminish the poverty rate.
Edy said Prabowo seeks to boost the ratio to 23 percent should he secure the presidency.
"We will need a larger budget to accelerate economic development programs. Managing state revenue requires an institution with equitable authority akin to other ministries, ensuring improved efficiency and inter-ministerial collaborations," Edy said.