Indonesia needs to focus on upper-middle-income taxpayers

• Dec 15, 2017

The World Bank (WB) has said  newly appointed Director General of Taxation Robert Pakpahan, who assumed office on Dec. 1, needs to create programs to draw more taxpayers in trying to boost the country’s tax revenue.

Speaking during the launch of the World Bank’s December edition of the Indonesia Economic Quarterly, WB Indonesia lead economist Frederico Gil Sander said the government should be able to address tax compliance in upper-middle income households.

“Approximately 20 percent of citizens are high income households. They contribute 47 percent of the consumption figure,” Sander said in Jakarta on Thursday, stressing that they were huge potential as taxpayers.

Robert’s predecessor, Ken Dwijugiasteadi, said only 78 percent of the targeted tax revenue of Rp 1.28 quadrillion (US$89.85 billion) had been collected as of November.

Meanwhile, WB country director for Indonesia Rodrigo A. Chaves said Robert should be able to raise the tax income ratio in the coming years. “Pak Robert Pakpahan should be able to improve[Indonesia’s] tax revenue,” said Chaves. (bbn)

Source: http://www.thejakartapost.com/news/2017/12/15/indonesia-needs-to-focus-on-upper-middle-income-taxpayers.html