The Indonesian Chamber of Commerce and Industry (Kadin) considers the government's plan to increase the tax ratio from around 10% to 11.2%-12% by 2025 to be a challenge for the business world and the economy.

Related to this, Vice Chairman of Kadin for Fiscal and Public Policy Suryadi Sasmita asked the government to continue expanding the tax base through extensification activities to increase state revenue in 2025. Suryadi said this on the sidelines of the Ministry of Finance's Halal Bihalal event (24/4/2024).

Suryadi said that so far, existing taxpayers have borne a heavy tax burden. So, if there is an increase in the tax ratio, the tax burden should be imposed on new taxpayers to create justice in the tax system in Indonesia.

"If you want to increase the tax ratio by 2 percentage points, you should look for extensification that can still be worked on. Expand the tax base," he said.

To maintain a conducive business climate, he hopes that the change of government in October 2024 will not change the current policies too much, including in the field of taxation, which has undergone tax reform in recent years.

Previously, it was known that in the Initial Draft of the 2025 Government Work Plan (RKP) document, the tax ratio target of 11.2%-12% of gross domestic product (GDP) in 2025 was written. This figure is higher than the tax ratio target in 2024 of 10.2%.