The Director General of Tax has recently enacted Decision No. KEP- T178/PJ/2004 the Ten-Year Tax Policy Blue Print on 22 December 2004. The Blue Print has been intended to set guidelines for the directorate in performing its vision and missions.

The three-pages Blue Print sets basic principles of taxation, namely transparent, direct and honest. The vision is to become a model of public service institution with a modern, international-class administration system. The mission is to collect state revenue from the taxation sector in order to support an independent state budget. The directorate’s motto is “to create a society that is aware and cares about taxation”.

In 2005, the directorate aimed at utilizing and completing the Single Identification Number (“SIN”) system, the 640 communication spots it previously owned and data from third parties for the tax assessment form (SPT) for comparison. In 2006 the directorate is expected to have overcame access obstacles in every taxation sectors, reforming all inconsistent taxation regulations and utilizing tax pardons and its criminal sanctions. Increase in tax revenues, internalization of tax awareness from the citizen and government efficiency are the targets for 2007. Transparency is expected to be systematically increased, tax subjects are expected to be compliant and legal certainty is expected to be materialized, for example in decreasing double tax number (NPWP) in 2008. In 2009 collusion, corruption and nepotism is expected to be automatically or systematically eradicated. Year 2010 is expected to be the year where state budget independency is materialized.

The government realized that tax fulfillment target continually increased every year while macroeconomic condition has not fully recovered. At the same time, the public demands to raise the value of non-taxable income, decrease income tax, end the luxury tax fee and open access to undisclosed information. The Blue Print is expected to become guidelines in materializing such demands.