III. TAXES
RESPONSIBLE
POLICY PROGRAM MEASURES OUTPUT TIME TARGET
PERSON
Re-evaluate the proposal to amend:
a. Law No. 16/2000 on Second
Amendment of Law No.
6/1983 on General Provisions
1. Improve the Laws on General
and Procedures of Tax;
Provisions and Procedures of Tax, Decision regarding the status of
b. Law No.17/2000 on Third
Income Tax and Value Added Tax the Draft Tax Laws that have Mar-06 Minister of Finance
Amendment of Law No.
on Goods & Services and Sales been submitted to Parliament
7/1983 on Income Tax;
Tax on Luxury Goods
c. Law No. 18/2000 on Second
A. Tax Incentives Amendment on Value Added
for investment Tax on Goods & Services and
Sales Tax on Luxury Goods
PP [Government Regulation] in
Stipulate which business sectors lieu of PP No. 148/2000 on
2. Income Tax facilities for certain and which regions are eligible for Income Tax Facilities for Capital
June -06 Minister of Finance
business sectors tax facilities according to Article Investment in Certain Business
31A of the Law on Income Tax. Sectors and or in Certain
Regions
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RESPONSIBLE
POLICY PROGRAM MEASURES OUTPUT TIME TARGET
PERSON
Decree of the Minister of
a. Reduce the effective motor Home Affairs with Minister of
May-06
vehicle tax for public transport proposals/recommendations of Home Affairs
vehicles the Minister of Finance
Tax Incentives 3. Reduce regional taxes that have b. Reduce the street lighting tax Revised PP No. 65 of the year
June -06 Minister of Finance
for investment the potential to push up for industry 2001
(continued) prices/service
c. Settle the issue of regional
taxes, levies/retribution:
Regulation of the related
Telecommunication Towers May-06 Minister of Finance
Minister
Weigh Stations
Flow of goods
a. Review tax rate on business
income and reduce the single Amendment of Law No. 7/1983
After the Draft Law is
tax for Entity Tax Subject from on Income Tax as lastly Minister of Finance
amended
B. Carrying out the 30% to 28% in the year 2007 amended by Law No. 7/2000
"self- and to 25% in the year 2010
assessment" 1. Review Income Tax rate
system
consistently Regulation of the Director
b. Review estimated net income General of Taxes on the Net
June -06 Minister of Finance
as basis for withholding tax Income Estimate for
Withholding Tax
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RESPONSIBLE
POLICY PROGRAM MEASURES OUTPUT TIME TARGET
PERSON
Amendment of Law No. 6 of the
2. Review regulations regarding Allow a relaxation of time limits for year 1983 on General
After the Law is
monthly tax payments (pre- monthly payment of tax for certain Provisions and Tax Procedures Minister of Finance
amended
payment/ instalment) taxpayers as amended in Law No. 16/
2000
Carrying out the
a. Carry out a Pilot Project to
"self-
establish a service desk for
assessment"
the community in the Tax The establishment of a service
system Dec-06 Minister of Finance
Office to provide information desk at all Regional Tax Offices
consistently
on how to file tax returns
(continued) 3. Improvement of tax services to
(SPT)
increase the people’s awareness
of the importance of paying tax
b. Socialize the amendments to
Immediately after the
the tax laws through websites,
Tax revenues increase relevant Laws are Minister of Finance
seminars, and various
amended
publications
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RESPONSIBLE
POLICY PROGRAM MEASURES OUTPUT TIME TARGET
PERSON
Revised Law No. 8/1983 on
Cancel the 2% administration Value Added Tax on goods and
Immediately after the
penalty for submitting a tax invoice services and Sales Tax on
1. Cancel the VAT penalty relevant Law is Minister of Finance
without the identity of the buyer, so Luxury Goods as several times
amended
as to decrease business costs amended lastly by Law No.
18/2000
C. Revised Value Revised Law No. 8/1983 on
Added Tax Value Added Tax on goods and
Immediately after the
(VAT) to promote 2. Increase the competitiveness of Apply a 0% tariff on certain service services and Sales Tax on
relevant Law is Minister of Finance
exports service exports exports to enhance export Luxury Goods as several times
amended
amended lastly by Law No.
18/2000
Change the VAT status for
Immediately after
3. Increase the competitiveness of (primary) agricultural products to Revised related Government
draft PP consulted Minister of Finance
(primary) agricultural products become non-taxable so as to Regulation (PP)
with Parliament
increase competitiveness
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RESPONSIBLE
POLICY PROGRAM MEASURES OUTPUT TIME TARGET
PERSON
Enhance Good Governance, in
1. Apply the Code of Ethics for Tax particular in connection with audit, Application in 31 Regional
Dec-07
Officers/Tax Officials objections, and correct application Offices throughout Indonesia Minister of Finance
D. Protecting the of tax regulations
rights of
taxpayers
Improve the tax payment system, Immediately after the
Revised Law No. 14/2002 on
2. Reform the Tax Payment System amongst others during the relevant Law is Minister of Finance
Tax Jurisdiction
objection process amended
a. Prepare decrees for tax
examinations and
Decree of the Minister of 2007 Minister of Finance
investigations that are
Finance
standardized and transparent.
1. Disclosure of Tax Audits and
Investigations
E. Promoting
Up Grading of Human
transparency and b. Carry out training that involves
Resources at the Directorate 2007 Minister of Finance
disclosure the new tax audit method
General of Taxes
Compile a Data Base and build a
2. Increasing the knowledge of the Website and Call Centre that is
knowledge base of various tax Mar-08 Minister of Finance
community regarding Taxes complete and functioning
provisions
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