Realistic Tax to GDP Ratio

According to Ken Dwijugiasteadi, Taxation Director General at Indonesia’s Finance Ministry, a tax-to-GDP ratio at 11% would be realistic for Indonesia’s 2018 state budget (but would still require big efforts from the government). In a plenary session of Indonesia’s House of Representatives (DPR) earlier this week, regarding the 2018 state budget proposals, some called for a sharp increase in the tax-to-GDP ratio to 13%.

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