Cartoon: Yuyun Nurrachman

There is something amiss with the tax remittances from the oil palm industry. At a time when the area of plantations is increasing, state revenues from the sector are stagnant, and are even in decline. This is an old problem long unresolved.

The explosion of new Covid-19 cases in the past month will see the increase in health care expenditure, mainly to purchase 400 million doses of vaccines and for patient treatment. The emergency has compelled Finance Minister Sri Mulyani Indrawati to recalculate the budget as the health ministry increased its budget from Rp172 trillion to around Rp185 trillion. Having experienced in dealing with the 1997-1998 and 2008 financial crises, Sri Mulyani says the Covid-19 presents challenges that are starkly different from those of the previous economic calamities.

The National Disaster Mitigation Agency (BNPB) uses the excuse of waiting for an audit to reimburse arrears to hotels providing isolation services. One instance of a slew of issues in budget management related to Covid-19 mitigation.

The government is criticized for planning to take staple goods out of the list of untaxed goods. The revision plan is in line with the World Bank's recommendations.

Revision to the General Provision of Taxation Procedures Law will change a number of tariff and tax collection schemes. It presents a dilemma between the need for state income and potential adverse impact on the economy.

An article containing plans for the second phase of tax amnesty is included in the draft for the General Provisions of Taxation Procedures Law. It was not formulated during the initial discussions.

Without law enforcement, reforms to the taxation sector are meaningless. Hopes could evaporate if this scandal is not uncovered.

Finance Minister Sri Mulyani Indrawati dismissed two tax officials, Angin Prayitno Aji and Dadan Ramdani, both of whom were named as suspects by the KPK. She hopes that the case does not disrupt the annual tax returns reporting currently in progress.

The government rolled out a tax incentive to boost vehicle sales. An effort to keep the automotive industry alive and investors in place.