Govt to revise tax laws

JAKARTA (JP): The government plans to revise the country's six tax laws in order to simplify tax collection and increase tax coverage, according to a senior official at the directorate general of taxation.

The director for Value Added Tax, Sjarifuddin Alsah, said here on Friday that the drafts on the proposed changes to the tax laws would be prepared by his office and the Tax Dispute Settlement Agency (BPSP).

He said his office would prepare drafts on the revision of Law No. 9/1994 on General Tax Provisions and Procedures, Law No. 10/1994 on Income Tax, Law No. 11/1994 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods, Law No. 12/1994 on Property Tax and Law No. 19/1997 on Distress Warrant.

The revision for the BPSP law would be performed by the agency itself, he said.

The revision on the Value Added Tax Law, Sjarifuddin said, would focus on provisions on tax facilities such as those related to the tax, which is covered by the government, he said.

He said a Letter of Intent signed by the government and the International Monetary Fund stipulated that tax facilities without strong legal base should be reduced or abolished to expand the tax base. (06)