After a long time … I have a bit time to write down something that am thinking since I was attend one Seminar about “Tax Justice in Asian Countries “.
I knew many people in my country will be angry if I said “in my opinion, taxes regulation in Indonesia far away better if compared with a few of taxes regulation in others countries in Asia especially tax income regulation (Pph Art 21/26)”. How they make the minimum income (ptkp) which can reach by taxes. Even though in this part I still said that Indonesian Government did not think much about gender equity when the domestic house wife or husband worker actually should have the same right to get the same nominal amount as one of reducing income factor to calculate tax payable of workers. Or about tax report which is so difficult for people to fill it.
So far, I did not hear too much from the poor people in Indonesia about how hard their live because of Tax that they should paid to their country ( I even knew, many rich people who has tax identity number, still did not pay their taxes). If you see the table from Indonesia Tax Directorate, you can see that Indonesia revenues from tax (especially income tax) is increasing from year to year even at 2009 when the global crisis economic impact already begin. The logical thinking will said, it must be because, actually it is no problem to pay tax, no too much problem from taxes regulation itself and need more good willing from the potential tax payer to pay taxes as one of their obligation to their country 😀
The problems that I often hear about : how hard people (especially poor people) to get services from our government. Not better services from our government, not cheaper school, not cheaper hospital, no working places and too many activity from our government which are wasting money so much (example the new building for Indonesia Assembly Members which is full with spa, saloon and fitness center !!!!!!!), or how the government trying to make any kind of seminar or comparative study to others area or even to overseas just because they want to spend the remaining money from their budget every!!!!!!!!!!!
That is the reason why Indonesia still needs loan from other countries to cover it budget. Even though like I said before that our revenues from Tax income itself is increasing year by year.
One of my Indonesia friend at the Tax Justice Seminar ever said that : that is the reason why we should doing something name “Tax Justice” . We should biggest companies, enterprises, or foreign companies in Indonesia paid tax as much as they can. So make taxes rate as high as possible for them
Uhm……..
So that is my opinion now.
1 No one feel happy to pay tax include company wants to pay tax. So if you do not pay your taxes even though you are actually have to pay tax, please do not complain about the biggest company which is not want to pay tax or do collusion with our government. Because actually you and them are the same position. And you could not complain about how bad the services of our government. Because their salaries depend on your taxes.
2. In Indonesia if you make higher tax for companies , means you create a new chance to make companies do collusion with our government. Imagine of course better for them to pay 10% to our government than to pay taxes if the rate too high. I did not say that every people in our government want to do corruption and collusion. But if there is a chance … who knows. And why we should create any chance from them to do it?
3. But if the tax rate is not too high? Which company will do collusion? Better for them to pay their taxes in normal rate.
4. If the taxes rate for Indonesia companies is too high, hard for company to sell their product. Means they will reduce their workers or they close their company, means you create a new problem name : new Unemployment member. Remember that Indonesia already has highest unemployment problems already.
4. It is funny if you are thinking only about revenue when your revenue already increasing but still could not cover your expenses. You should thinking about your budget, about your expenditures.
5. Our local government until central government should make transparency in their budget (publish it to the public. so everybody can see it), so the civil society will know how much budget for the government own expenditures (e.g. salaries, allowances etc ) and how much budget subsidy for public services as health budget for poor people, school, etc. It is the same with the expenditures. Transparency of the government (local until central) expenditures (in detail)
7. So we can make a comparison Budget vs Actual Expenses. And all the question about it, we can send to our Assembly Members as our representative, and will ask by them to the President when he give his accountability report at 16 August, and it should be open to the public. This is actually the function of our representative there. Not just sleeping or do fitness or spa 😀
8. It is kind of holistic justice. From Revenues until Expenditures – Fiscal Justice. It will same like Beatles songs: “the long and winding road” lol . Need knowledge, good will, courage, ability, time to do it . But still nothing impossible if we believe it.