DistantNews
🇮🇩 Indonesia /Economy & Trade

Lawmaker Flags Coretax Glitches, Warns of Taxpayer Compliance Risk

From Republika · (7m ago) Indonesian Critical tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • A member of the Indonesian House of Representatives, Said Abdullah, has voiced concerns over recurring technical issues with the Directorate General of Taxation's Coretax system.
  • He warned that these disruptions could decrease taxpayer compliance and negatively impact state revenue, which is crucial for funding government programs.
  • Abdullah urged the Minister of Finance to conduct a thorough audit of the system to identify and fix underlying weaknesses.

From Jakarta, Republika reports on the significant concerns raised by Said Abdullah, a member of the House of Representatives' Commission XI, regarding the ongoing technical problems plaguing the Coretax system. This system, intended to modernize tax administration and boost state revenue, has been plagued by repeated glitches since its launch.

We support the development of Coretax because its goal is clear, which is to improve the quality of tax administration and encourage state revenue.

— Said AbdullahAbdullah expresses support for the Coretax system's objectives.

Abdullah's critique highlights a critical issue for Indonesia's fiscal health. He emphasizes that tax revenue is the backbone of the nation's economy, essential for financing government programs and development. The unreliability of the Coretax system, he argues, directly threatens taxpayer compliance, potentially leading to a shortfall in revenue precisely when the country faces economic challenges exacerbated by geopolitical factors.

If the system often has problems, I am worried that taxpayer compliance to report will actually decrease.

— Said AbdullahAbdullah voices concern about the impact of system failures on taxpayer behavior.

The lawmaker's frustration is palpable as he questions the system's maintenance protocols, suggesting they are inadequate and possibly indicative of deeper, fundamental flaws. He draws a parallel with the banking sector's standard practice of conducting maintenance during off-peak hours, a seemingly obvious solution not being applied here.

Taxes are the main support for government programs and development. If compliance decreases, revenue will also be pressured, especially as we are facing economic challenges due to geopolitical factors.

— Said AbdullahAbdullah explains the critical role of tax revenue for the Indonesian economy.

Republika supports Abdullah's call for accountability and action. The article underscores the need for a comprehensive audit, involving relevant agencies and independent professionals, to diagnose and rectify the system's weaknesses. The implication is clear: the government must ensure the Coretax system functions reliably to maintain public trust and secure vital state finances. This issue is not merely technical; it strikes at the heart of national economic stability and governance.

Why is maintenance not carried out at night? Even the banking world routinely performs maintenance during that time. This is a common protocol.

— Said AbdullahAbdullah questions the current maintenance schedule for the Coretax system.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog