The potential revenue from Land and Building Tax (PBB) in provinces rich in oil palm plantations reaches tens of billions of rupiah annually. According to a study by the Sustainable Madani Foundation, the average PBB per hectare in Riau reaches Rp 33,024, with 2.3 million hectares of oil palm plantations. Therefore, the potential PBB revenue in the region is Rp 74.52 billion annually.
Furthermore, in West Kalimantan, land and building tax (PBB) revenue from 4.5 million hectares of oil palm plantations reaches Rp 76.04 billion per year. The average PBB per hectare is Rp 17,036. Despite its significant tax potential, revenues in this oil palm-rich region are currently reportedly suboptimal due to weak taxpayer compliance.
The Sustainable Civil Study also revealed a decline in taxpayer compliance, from 70.6 percent in 2011 to 46.3 percent in 2015. This decline was due to the suboptimal number of audits conducted by the Directorate General of Taxes (DGT). Furthermore, data on plantation permits (IUP and HGU), plantation business development reports, and development maps were also still suboptimal.
The complexity of the plantation PBB administration system and the weak information system are also contributing to the decline in taxpayer compliance. To optimize PBB for palm oil plantations, Madani Berkelanjutan recommends collaborative licensing data exchange between the Directorate General of Taxes (DGT) and relevant agencies at the district/city level.
The Directorate General of Taxes (DGT) also needs to send Tax Object Notification Letters (SPOP) to plantation permit holders who are not yet registered as taxpayers. Furthermore, the optimization of PBB (land and building tax) revenues needs to be encouraged to be included in regional planning agendas and targets to increase Regional Original Income (PAD).
Katadata.co.id
This research has been published on Katadata.co.id with the title "Palm Oil Tax Not Yet Optimal".
