The awareness of Indonesian citizens to pay taxes is still quite low. According to theWorldometers data report, 40.9% of the population in Southeast Asia comes from Indonesiawith a dominating population of 273.52 million. However, according to a survey by the
Central Bureau of Statistics (BPS), the number of people paying taxes in Indonesia increased
from 6 million in 2022 to 6.93 million in February 2023. According to the Ministry of
Finance, tax revenue until February 2023 experienced very good tax growth with a realisation
of Rp279.98 trillion or 16.3% of the 2023 state budget target, growing 40.35%. This indicates
that the number of taxpayers, both individuals and companies, is still quite low despite the
increase in tax payments from last year. there are several factors that make people in
Indonesia reluctant to pay taxes such as:
1. lack of information from the government
The government does not make an effort to explain to the public why taxes are important.
2. lack of tax education
Education levels in developing countries are very low and underdeveloped in some areas. It is
difficult for them to understand the importance of paying taxes.
3. Lack of public trust in the government's management of tax payments
The lack of public trust stems from tax evasion committed by unscrupulous government
officials. These corrupt practices make people reluctant to pay taxes or deposit money to the
state.
4 Lack of social ethics
People do not have social ethics. Laws are not important to them. People always think of their
own personal interests. Based on this way of thinking, it will be very difficult to pay taxes as
an obligation.
5. High tax rates
High tax rates are a reason for people's reluctance to pay taxes. A low tax rate does not
necessarily make people want to pay taxes, but a high tax rate will certainly increase the
number of people who refuse to pay taxes even though taxes are very helpful for government
revenue, especially the poor who have difficulty making ends meet.
If left unchecked, there is no guarantee that future state revenues will increase or remain
stable, but rather it can lead to several risks related to the context of economic stability,
namely:
1. Low government revenue: Low government revenue can lead to significant budget deficits,
which can destabilise the economy in the long run by reducing government spending on
public goods and services such as infrastructure, education, and healthcare.
2. Rising fiscal deficits and debt: When fiscal deficits increase, the government is forced to
borrow to cover these deficits, leading to an increase in public debt. High public debt can
strain a country's economy, hamper the growth of economic stability, and affect interest rates.
3. Income inequality and injustice: high income inequality can undermine social and political
stability.
4. reduced fiscal capacity: economic stability may be weakened as fiscal resources are limited
to deal with new problems.
Maintaining the economic stability of a country is essential for sustainable economic growth
and the welfare of society. There are various ways to increase public awareness of the
importance of paying taxes, one of which is social campaigning. Social campaigns can be
conducted through various means, such as social media, television, radio, and print media
advertisements. These media are effective means to increase public awareness in paying
taxes. Social media can be used to provide information and education on the importance of
paying taxes and the benefits of paying taxes, as well as organising seminars and debates on
the importance of paying taxes.
There are many other things that can be done to increase tax awareness, such as:
1. Tax Awareness Campaign as a form of increasing tax awareness among millennials
2. Majak (Tax Incentive) Campaign can be done by providing information about tax
incentives received by the community.
Kompak (Tax Comparison) campaign can be done by comparing Indonesian taxes with other
countries.
4. Ketebak (tax disclosure) campaign can be done by providing information on the use of
taxes in a transparent and accountable manner.
5. E-tax socialisation movement can be done by providing information on the ease and
benefits of using E-tax.
When people are more aware and compliant in paying taxes, many benefits can be obtained
in maintaining economic stability. Some of the benefits of increased awareness among others:
1. A stable source of state revenue: Taxes are one of the main sources of government revenue.
Increasing public awareness of the importance of paying taxes can significantly increase
government revenue from the tax sector and enable the government to finance various
development programmes, public services and infrastructure to support economic growth.
2. Promote sustainable economic growth: the government can allocate tax proceeds to various
economic programmes that promote sustainable economic growth, create new jobs, and
improve people's welfare, such as industrial development, investment in education and
training, and infrastructure development.
3. Reducing social inequality: The government can provide assistance to groups in need, such
as through transfers from revenue to social programmes. Such programmes include health
benefits, education, and social protection.
Increased public awareness of the importance of paying taxes will help ensure that all citizens
contribute to building a more just and equitable society. Paying taxes is a legal duty and
obligation for Indonesian citizens. Taxes are also an internal source of revenue that fuels the
country's financial system. Taxes finance social programmes and public investments, such as
health, education, and infrastructure, which are essential for nation-building and achieving
the common goal of a prosperous, functional, and orderly society. With increased public
awareness of the importance of paying taxes, the level of tax compliance can be expected to
increase. Awareness will increase that paying taxes is a responsibility as a good citizen and its
contribution is important to maintain the country's economic stability.
