JAKARTA (Reuters) - The three main candidates contesting Indonesia's presidential elections this month are proposing to bolster government coffers by creating a new tax collection agency, despite scepticism from the tax and business community.
Prabowo has set the highest tax-to-GDP target of 18%, or about $100 billion in additional tax revenue, if he wins the presidency, while also promising personal income tax cuts.
NEW AGENCY NOT ENOUGHHowever, some economists and the business community say a new tax agency might not lead to higher revenue if other issues like the low tax base are not addressed.
"There may be more binding constraints to revenue collection than administrative independence of the tax authority," the multinational lender told Reuters.
"Tax officers should be fair ...
Persons:
Joko Widodo's, Prabowo Subianto, Ganjar Pranowo, Prabowo, Drajad Wibowo, Jakarta Governor Anies, Wijayanto Samirin, Jahen, Fajry Akbar, Tutum, Stefanno Sulaiman, Stephen Coates
Organizations:
Jakarta Governor, U.S . Internal Revenue Service, Central Java, University of Indonesia, Bank, Reuters
Locations:
JAKARTA, Asia's, Indonesia