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Minister of Finance: Tax Reform is the Key to Improve State Revenue

Jakarta, 14/07/2021 MoF – Tax reform is the key to improving state revenues. This was conveyed by the Minister of Finance (Menkeu) Sri Mulyani Indrawati when giving a mandate at the Tax Day commemoration ceremony which was held virtually, Wednesday (14/07).

In its journey, Indonesia's taxation has carried out reforms since 1983. The result of the reform at that time was changing the tax collection system based on official assessment into self-assessment.

Now, the government and the HOuse of Representatives (DPR) are discussing the next stage of tax reform efforts to support global changing trends. As a nation that lives side by side with other nations and has global economic relations, Indonesia is faced with competition but also collaboration.

“Our tax system must continue to be designed and redesigned. Continue to be strengthened in the context of global changes and domestic changes," said the Minister of Finance.

Global changes such as digital technology that is increasingly dominating and climate change must be responded to appropriately. Domestically, the existence of digital technology has also changed the way people interact and transact. Thus, the tax system must be strengthened.

"Because the world is constantly changing. The world continues to experience changes that create opportunities, but can also threaten Indonesia if we don't change," concluded the Minister of Finance. (dj/ip/hpy)