Indonesian Tax Office Seizes 169 Assets Worth 95.11 Billion Rupiah in Simultaneous Operation

August 23, 2024 - The Directorate General of Taxes (DGT) has once again demonstrated its firm stance on collecting tax arrears. In a coordinated effort, three regional tax offices in East Java conducted simultaneous seizure operations targeting assets of delinquent taxpayers.

"Those who are capable and earn more should naturally pay higher taxes. If they have tax debts, they should settle them promptly. Don't wait until active collection measures like asset seizure or auction are implemented," emphasized Agustin Vita Avantin, Head of East Java II Regional Tax Office.

This operation successfully secured 169 assets with a total estimated value of 95.11 billion rupiah (approximately $6.3 million USD). The seized assets varied widely, including motor vehicles, precious metals, machinery, securities, shop houses, apartments, land, and bank accounts.

The seizure action is carried out in accordance with the Minister of Finance Regulation (PMK) 61/2023. Prior to seizure, the DGT had pursued various collection efforts, including issuing warning letters and force letters.

"Seizure is only executed if the tax bearer fails to settle their arrears within 48 hours after the force letter is served," Avantin explained.

Furthermore, Avantin stressed that this operation aims not only to optimize state revenue but also to enforce tax laws. "We hope this measure will serve as a deterrent and improve public compliance in fulfilling their tax obligations as a form of mutual cooperation in nation-building," she stated.

The seized assets will be auctioned to recover losses to state revenue. For seized bank accounts, the DGT will directly transfer the funds to the state treasury.

This simultaneous seizure operation is part of the government's strategy to increase the tax ratio. Previously, Finance Minister Sri Mulyani had outlined strategies to improve the tax ratio in a meeting with the House of Representatives.

With these firm actions, the DGT hopes that the public will become more aware of the importance of paying taxes on time, thus avoiding detrimental seizure actions.

The operation involved various types of assets, reflecting the diverse nature of tax debtors. "Whether it's a luxury car or a small shop, we treat all cases equally under the law," a DGT spokesperson added.

As Indonesia continues to strengthen its tax collection efforts, officials remind citizens that paying taxes is crucial for national development. "Every rupiah counts in building our nation's future," concluded Avantin.