Failure to Pay Taxes, Driving License Renewal Will Be Complicated This Year

KatadataOTO – The government will implement a number of new policies this year to boost the country's economy. One of them is through the implementation of the Coretax system, effective January 1, 2025.

Coretax itself is a system for modernizing tax administration, as everything is integrated into one, from taxpayer registration to tax collection.

Besides being said to make things easier, Coretax is seen as a solution to increase taxpayer compliance, which is still relatively low in Indonesia.

“For example, out of more than 100 million cars and motorcycles, only 50 percent pay taxes. So our compliance is very low,” said Luhut Binsar Pandjaitan, Chairman of the DEN (National Economic Council) as quoted from Antara, Friday (10/1).

Photo : NTMC Polri

The integration of tax services is claimed to have a positive impact on state revenue. This is because several activities can be blocked if taxpayers do not fulfill their obligations.

This includes passport processing and the renewal of a SIM (driver's license). All of these can be hindered if the concerned party has not paid their taxes.

“So everyone understands, and this can make Indonesia truly transparent going forward,” Luhut affirmed.

It was further explained that the Coretax system will also be combined with GovTech digitalization, a.k.a. government digital services.

For example, unreported purchases of motor vehicles. The authorities will cross-check through this digital integration, making it easier to monitor new vehicle data.

“Later, GovTech can perform automatic blocking, so whether they like it or not, they must comply. This explains why digitalization is the solution,” said Chatib Basri, a member of DEN, on the same occasion.

Photo : Courtesy

Once it is running optimally, the Coretax system has the potential to increase state revenue by up to 6.4 percent of the GDP (Gross Domestic Product), equivalent to Rp 1.5 trillion.

The DEN hopes all parties will give Coretax time to run before offering criticism, as there are still a number of things that need to be resolved.

The hope is that this digital implementation can provide many benefits and increase transparency for the public regarding taxation.