Jakarta (ANTARA News) – The NGO Prakarsa supports President Joko Widodo’s government’s move to combat tax evasion globally at the ongoing G20 Summit in Germany.
“The Indonesian government needs to campaign globally for tax compliance, especially compliance with global corporations and the super-rich. Apart from that, Indonesia needs to encourage tax cooperation on digital businesses, “said Prakarsa Executive Director Ah Maftuchan in a release on Saturday.
It is important because the digital business sector’s tax potential is vast, and their compliance is still considered very low.
He also stated that Indonesia must force all heads of G20 member states to fight tax evasion jointly. Considering that Indonesia is one of the countries that have become a victim of tax avoidance and evasion practices,
The Indonesian government, he continued, must also promote progressive and redistributive tax policies globally through the G20 and other multilateral forums.
“Taxes must be an instrument for increasing public investment and increasing social welfare, and reducing inequality,” said Ah Maftuchan.
Besides, President Joko Widodo is also encouraged to have the courage to lead global cooperation between tax jurisdictions and law enforcement to prevent and handle economic crime and taxation.
As reported, the results of discussions related to the tax sector at the G20 Summit that President Joko Widodo participated in must be treated critically to not be detrimental to national economic policies.
“The G20 summit meeting in Germany is critically essential to be taken because it will directly impact Indonesia’s domestic policy. There are several important points, especially in the tax sector and extractive industry, which President Joko Widodo and all G20 leaders should encourage, “said the National Coordinator of Publish What You Pay (PWYP) Indonesia, Maryati Abdullah.
In his opinion, PWYP Indonesia should pay attention to five things, including Indonesia and the G20 countries, to seriously take action against and prevent illegal money flows from tax avoidance and evasion practices, money laundering, and other crimes by establishing appropriate monitoring mechanisms.
He also added that Indonesia needs to encourage the transfer of knowledge from the G20 countries to implement the “Automatic Exchange of Information” (AEoI) so that implementation can run well and effectively.
He said Indonesia and the G20 countries were also considered essential to ensure companies in the extractive sector comply with international standards in sustainable development by paying attention to human rights, the environment, governance (transparency and accountability), and workers’ rights along its value chain.