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JAKARTA (ANTARA) – The next finance minister will play a key role in achieving the government revenue target of IDR 2,996.9 trillion (about USD 190.91 billion) in 2025, according to the Institute for Development of Economics and Finance (Indef).
“There are two decisive factors. First, purchasing power is currently declining. Second, the capacity of the Ministry of Finance, including the leadership of the minister,” Indef senior economist Didik Junaidi Rachbini said on Saturday.
The next government’s state revenue targets will include tax revenue of IDR 2,490.9 trillion, non-tax revenue of IDR 505.4 trillion and subsidies of IDR 600 billion.
Rahabini warned that achieving this goal, especially the taxation component, would be challenging, so a capable finance minister was essential.
He highlighted declining purchasing power and reduced liquidity for many middle-class households as significant obstacles.
“Tax compliance by the wealthy is also an issue. However, addressing these issues could make this difficult goal achievable,” Rahebini said.
Achieving this goal also depends on strong economic growth and an improved tax system. Improving compliance among taxpayers, strictly enforcing tax laws, and tapping the tax potential of the informal sector are critical.
Rahebini stressed the need to continue tax reforms, including digitalization and broadening the tax base.
“To achieve such a lofty goal, we must significantly enhance our tax collection and administration capabilities,” he said.
Related News: State revenue in the 2025 draft budget is planned to be IDR 2,996 trillion
Related News: As of December 12, the state budget deficit reached 35 trillion rupiah
Translator: Laka Aji, a Seventh-day Adventist
Editor: Anton Santoso
Copyright © ANTARA 2024
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