Implementation of Law Number 7 Of 2021 On Harmonization of Tax Regulations As An Effort to Improve the Budget Deficit And Increase The Tax Ratio

Abstract

This study discusses the Implementation of Law Number 7 of 2021 concerning Harmonization of Tax Regulations as an Effort to Improve the Budget Deficit and Increase the Tax Ratio During the Covid-19 pandemic in Indonesia, of course, tax income in the state treasury is very important. This research uses a statute approach, conceptual approach, and comparative approach. The legislative approach is carried out by examining interrelated laws and regulations (regeling) and policy regulations (beleidsregel). In this regard, a study was carried out on the ratio legis of the formation of a law. The result of this study is It is undeniable that with the emergence of the pandemic in 2020, tax revenue in Indonesia had contracted very deeply minus to 12%. However, the Ministry of Finance revealed that on July 14, 2021, tax revenue in the first semester of 2021 began to improve and the figure was positive compared to 2020. Recording until the end of June, tax revenue managed to collect funds of Rp 557.8 trillion or an increase of 4.9%. This shows progress in the field of tax that deserves appreciation. It does not stop there, it seems that the government is currently increasingly intensifying to make improvements in the tax sector. It was proven by the enactment of Law Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP Law) on November 5, 2021. The ratification of this law is in line with ongoing reforms in the tax sector, especially in aspects of regulations and business processes, adjustments to tax policy arrangements that are comprehensive, consolidative, and harmonious in nature are needed so that the presence of Law Number 7 of 2021 concerning Harmonization of Tax Regulations.