Tuesday, April 6, 2010

Will Tax Directorate General be Clean if Separated from Finance Ministry?

Legislator of the Golkar party House faction Bambang Soesatyo has made a proposition on the separation of the Taxation Directorate from the Finance Ministry to prevent leaks and to facilitate supervision. "For wider leaks of state revenues a separation of the Tax Directorate General from the Ministry of Finance needs to be considered," Bambang Soesatyo said in Jakarta Monday.
He said the separation would hopefully cause the taxation directorate general to become more independent and easier to supervise. It has been rather difficult, Bambang said, to control and supervise the taxation directorate general as it was right under the finance ministry.

A similar view was also expressed by banking expert Ichsanuddin Nooersy. Ichsanuddin said that in the United States, there is a separation between money receipts (taxation directorate general), budget office, accountancy agency at the finance ministry and the capital market supervisory agency (Bapepam).

He said the government under President Gus Dur has actually accepted the idea on a separation.  Likewise Megawati Soekarnoputri in her 2009 presidential election campaigns also planned to make such a separation. "But the government of President SBY said it is a later worry,"  Ichsanuddin said

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