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Malang City Signs PKS to Optimize Central and Regional Tax Collection

Klojen (malangkota.go.id) – The Malang City Government is one of 78 local governments that have signed the Cooperation Agreement (PKS) for Optimization of Central and Regional Tax Collection between the Directorate General of Fiscal Balance (DJKP), the Directorate General of Taxes (DJP), and 78 Local Governments. Based on the evaluation of the implementation and benefits of the implementation of the PKS in 7 pilot local governments, in 2020 the PKS was expanded in terms of the number of participating local governments, namely from seven local governments in 2019 to 78 local governments in 2020.

Malang Mayor Drs. H. Sutiaji (second from left) signs the PKS for Optimization of Central and Regional Taxes at the NCC of Malang City Hall

The Mayor of Malang, Drs. H. Sutiaji, attended the virtual event accompanied by the Regional Secretary of Malang City and the Head of Bapenda of Malang City in the Ngalam Command Center (NCC) Room, Malang City Hall, Tuesday (26/8/2020). The signing of this PKS is an effort to increase regional tax revenues, and in line with current technological developments where modern regional tax management needs to be carried out immediately.

In his speech, the Director General of Fiscal Balance of the Indonesian Ministry of Finance, Drs. Astera Primanto Bhakti, M.Tax, revealed that the purpose of this cooperation agreement is to optimize tax revenues. This is part of the effort to implement the exchange of tax data and information utilization, licensing data and various other information.

"We are grateful that today we can sign the optimization of central and regional tax collections which was held virtually," said Astera, Tuesday (26/8/2020).

With this activity, it is expected to optimize the delivery of data, regional financial information and joint supervision of taxpayer compliance. Another goal to be achieved from this activity is also to optimize the use of programs or activities to improve tax services to the community.

In addition, this activity is also to increase the knowledge capacity and knowledge of tax officials, especially in the field of mentoring and supporting the success of taxation.

Through this collaboration, the central government obtains important data sources for tax compliance monitoring, including ownership data, business turnover, building permit data, tourism business data, mining business data, fisheries business data and plantation business data, and others.

Likewise, local governments will also receive data from DJP for the purpose of regional supervision. Taxes are the main source of central and regional government revenues which are used not only for physical development but also to help low-income communities. (cah/yon)

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