The government has set the tax ratio target of 13.7% by 2024 in order to improve taxpayer compliance. According to the Director of Public Counseling, Services and Relations, Hestu Yoga Saksama, the enforcement of tax compliance is the key to achieve the tax ratio target.
Therefore, the Directorate General of Taxation has prepared some programs, one of which is taxpayer status confirmation. Taxpayer status confirmation is an examination conducted by government agencies before providing certain public services. Government agencies may not provide those services if taxpayer data such as taxpayer identification number and tax return is declared invalid.
Until June 2019, taxpayer status confirmation in accordance with Presidential Instruction Number 7 Year 2015 has been applied by 12 ministers and institutions. Subsequently, taxpayer status confirmation will be applied to 16 other ministries and institutions.