DGT Probes 6 Million Non-Effective Taxpayers Still Earning to Broaden Tax Base

JAKARTA. The DGT (Directorate General of Taxes) has found approximately 6 million taxpayers categorized as non-effective who are suspected of still engaging in economic activities. The data is now being traced to confirm potential tax revenues that can still be collected from this group.

Director General of Taxes Bimo Wijayanto stated that this move is part of a tax extensification strategy aimed at expanding the state revenue base.

“There are around 6 million taxpayers who do not report their economic activities, and they fall under the non-effective taxpayer category. However, we have external data—such as withholding tax evidence and records of economic activities, related to these taxpayers,” Bimo said during a media briefing in Jakarta on Thursday (5/3), as quoted by Kontan.co.id.

According to him, some non-effective statuses may result from administrative factors, such as the consolidation of Taxpayer Identification Numbers (NPWP) between spouses who were previously registered separately.

Economic Activity Still Detected

Nevertheless, the DGT has identified indications that some non-effective taxpayers continue to earn additional income recorded within the tax system.

Bimo gave an example of an individual with a primary job who also earns income from other activities.

“Sometimes we forget, for example, someone may work as a civil servant in a ministry but also act as a part-time trainer on weekends at a university. That generates income, and there is withholding tax evidence. That data is captured by us,” he explained.

In addition to side jobs, the DGT has also detected economic activities from side businesses such as online ventures. This information is obtained from various data sources, including transactions in electronic commerce systems that generate withholding tax records.

“There are also those engaged in side businesses like online businesses; we obtain withholding tax evidence from PMSE (electronic trading systems), for example,” he added.

Through this tracing process, the DGT aims to clean up taxpayer data while identifying tax revenue potential that has not yet been optimally utilized. (KEN)