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Government urged to reform Indonesian's taxation system

Government urged to reform Indonesian's taxation system

The International NGO Forum on Indonesian Development (INFID) has said the reforming of Indonesia’s taxation system is considered an urgent need as it would allow the government to optimally fund domestic development, according to the Jakarta Post.
INFID program manager Siti Khoirun Nikmah said the government must consider that people’s taxes were the most important means of funding development in Indonesia, to get rid of the country’s dependency on the use of foreign funds and foreign debt to finance development projects.
“The tax potential we can allocate for development funding is large enough. However, it is compromised by an uneven tax system that doesn’t evenly tax the super-rich and allows illicit financial flows to happen,” Nikmah told The Jakarta Post at a press conference on Tuesday.
She further said illegal capital currency as a result of tax evasion in particular had cost Indonesia trillions of rupiah every year in potential development funds.
Indonesia ranks seventh among countries most negatively affected by the flight of funds to tax havens, with a proportion of about 25 percent of gross domestic product (GDP) in 2014.


Updated : 2021-09-17 09:44 GMT+08:00