As a learning organization, changing and improving is a necessity for the Directorate General of Taxes (DGT). Changing does not only produce something new, but also by fixing or tidying up what was lacking from the previous state. Faced with an unsatisfactory condition of taxpayer compliance, low tax ratio figures, coupled with tax targets which always increase every year even though DGT’s organizational capacity is limited, and changes in the external environment such as the development of the digital economy and very rapid technological advances, the DGT is determined to continue with tax reform.
The milestone in tax reform has actually been started since 1983, namely with the reform of the tax law which changed the official assessment system into self assessment. The reform process continued at the beginning of the third millennium. As a manifestation of the ideals of bureaucratic reform, between 2002 – 2008 DGT launched Tax Reform Volume I which focused on administrative modernization and amendments to tax laws. It does not stop there, then continues with Tax Reform Volume II with a major focus on increasing internal control in the period 2009 – 2014.
Meanwhile, DGT is currently entering the Tax Reform Program Volume III which began in 2015. The major themes raised in this stage of reform are the consolidation, acceleration and continuity of tax reform with a focus on 5 (five) pillars, namely: Organization, Human Resources, Information Technology and Databases, Business Processes, and Tax Regulations.
At the current stage of tax reform, DGT wants to transform itself into a strong, credible and accountable institution both in structure and authority with adequate capacity. Furthermore, improvements to the five pillars above are expected to be able to detect the potential of existing taxes and turn them into tax revenue effectively and efficiently. In turn, this will lead to increasing taxpayer trust in taxation institutions, increasing the number of taxpayers, the reliability of database management and tax administration, and the integrity and productivity of tax officials.
Apart from that, tax reform also aims to build optimal synergy between institutions, improve taxpayer compliance both formally and materially, and ultimately, it is expected to increase state revenue as reflected in the achievement of high tax ratio figures.
DGT is currently entering the stage of procuring the Core Tax Administration System (SIAP). With this system, DGT will integrate all its business processes into the new system. It is hoped that with the new system all DGT institutional activities and services can be done digitally so that they can provide more accurate data for both internal and external purposes in accordance with developments in information and technology. #OurTaxesforUs