IKPI Chairman States Many Economic Actors Exist, but Not All Are in the Tax System

The Chairman of the Indonesian Tax Consultants Association (IKPI), Vaudy Starworld, revealed that one of the major challenges to tax revenue is the suboptimal inclusion of all economic actors in the taxation system. This was stated during a Public Hearing (RDPU) by the Budget Committee (Banggar) of the House of Representatives (DPR RI), at the Nusantara II Building, Jakarta, on Wednesday (1/4).

He explained that although the volume of economic activities continues to increase, not all business actors have registered as taxpayers. This situation triggers potential losses in state revenue.

“Many economic actors are already operating, but not all are recorded in the tax system,” he said in a written statement on Thursday (2/4).

Vaudy emphasised that the Directorate General of Taxes needs to optimise the use of technology and data to expand the reach of taxpayers.

According to him, data integration between agencies is key to identifying untapped tax potential.

IKPI also assessed that a data-based approach would be more effective than conventional methods in netting new taxpayers.

In addition, he highlighted the importance of incorporating the informal sector and the digital economy into the taxation system.

“If all economic actors are registered, tax revenue potential will increase significantly,” said Vaudy.

He affirmed that this step is an important part of the tax extensification strategy that must be strengthened going forward.