The Importance of Extensification in Increasing the Number of Taxpayers

Oct 13, 2025 by thesweetdesigns.com 22 views

Introduction

Sustainable national development aims to improve the welfare of the community, both in terms of material and spiritual. However, to achieve this goal, sufficient and planned funds are needed. One effective source of financing is tax, which is regulated in the Law of the Republic of Indonesia Number 28 of 2007. Tax is a mandatory contribution from individuals or entities that are forced and not getting direct rewards, and are used for the benefit of the state in order to achieve the prosperity of the people. Taxes have a very vital function in financing government activities and development. As a main source of funding, taxes play a role in meeting various operational cost needs.

In this context, the government continues to evaluate and renew tax policies in the hope that it can significantly increase tax revenue every year. In order for tax revenue to grow optimally, community participation as a taxpayer is needed. The government's efforts to increase tax revenue are not only focused on increasing tax rates, but also on increasing the number of taxpayers. One of the efforts to increase community compliance in fulfilling tax obligations is through extensification. Extensification is a strategy to increase the number of taxpayers by educating and encouraging individuals and business entities that have not been registered to register as taxpayers.

The Importance of Extensification in Increasing the Number of Taxpayers

Extensification is a proactive approach to reach the community, especially those earning above non-taxable income. Education about the importance of taxation obligations and the benefits of tax payments is the main focus in this effort. Public awareness of the importance of tax contributions to development is expected to increase their level of compliance and participation. Analysis shows that extensification not only has an impact on increasing the number of taxpayers, but also contributes to increasing public awareness of taxation responsibilities.

In addition, this effort is able to create public trust in the government, because they feel involved in the development process through their tax obligations. The government's efforts to increase tax revenue through extensification are not only focused on increasing tax revenue, but also on creating a sense of community participation and ownership. By involving the community and providing adequate education, it is hoped that an increase in tax revenue can be achieved.

Case Study: Medan Petisah Primary Tax Service Office

The Medan Petisah Primary Tax Service Office is a concrete example of how extensification can be carried out. Through a proactive approach, the Medan Petisah Primary Tax Service Office is trying to reach the community, especially those earning above non-taxable income. The office has implemented various strategies to educate and encourage individuals and business entities to register as taxpayers. These strategies include public awareness campaigns, tax education programs, and one-on-one consultations with taxpayers.

The results of the extensification effort at the Medan Petisah Primary Tax Service Office are promising. The number of taxpayers has increased significantly, and public awareness of taxation responsibilities has also increased. In addition, the effort has created public trust in the government, because they feel involved in the development process through their tax obligations.

Conclusion

The implementation of extensification at the Medan Petisah Primary Tax Service Office is a strategic step in increasing the number of taxpayers. By involving the community and providing adequate education, it is hoped that an increase in tax revenue can be achieved. The tax collected will be the main driver in financing national development, so that the welfare of the community can be more guaranteed. The government's efforts to increase tax revenue through extensification are not only focused on increasing tax revenue, but also on creating a sense of community participation and ownership.

Recommendations

Based on the case study of the Medan Petisah Primary Tax Service Office, the following recommendations can be made:

The government should continue to implement extensification efforts to increase the number of taxpayers.
The government should provide adequate education and training to taxpayers to increase their awareness of taxation responsibilities.
The government should create a sense of community participation and ownership in the development process through tax obligations.
The government should evaluate and renew tax policies to increase tax revenue and community participation.

By implementing these recommendations, the government can achieve its goal of increasing tax revenue and community participation, and ultimately, improving the welfare of the community.

Q: What is extensification in the context of taxation?

A: Extensification is a strategy to increase the number of taxpayers by educating and encouraging individuals and business entities that have not been registered to register as taxpayers. It is a proactive approach to reach the community, especially those earning above non-taxable income, and to increase public awareness of taxation responsibilities.

Q: Why is extensification important in increasing the number of taxpayers?

A: Extensification is important because it increases public awareness of taxation responsibilities and creates a sense of community participation and ownership in the development process. By involving the community and providing adequate education, it is hoped that an increase in tax revenue can be achieved.

Q: What are the benefits of extensification in increasing the number of taxpayers?

A: The benefits of extensification include increasing the number of taxpayers, increasing public awareness of taxation responsibilities, and creating public trust in the government. It also helps to increase tax revenue and community participation in the development process.

Q: How can extensification be implemented in increasing the number of taxpayers?

A: Extensification can be implemented through various strategies, including public awareness campaigns, tax education programs, and one-on-one consultations with taxpayers. The government can also provide adequate education and training to taxpayers to increase their awareness of taxation responsibilities.

Q: What are the challenges of implementing extensification in increasing the number of taxpayers?

A: The challenges of implementing extensification include lack of awareness among taxpayers, lack of education and training, and lack of community participation. The government must also address the issue of tax evasion and non-compliance.

Q: How can the government overcome the challenges of implementing extensification in increasing the number of taxpayers?

A: The government can overcome the challenges of implementing extensification by providing adequate education and training to taxpayers, increasing public awareness of taxation responsibilities, and creating a sense of community participation and ownership in the development process. The government must also address the issue of tax evasion and non-compliance.

Q: What is the role of the government in implementing extensification in increasing the number of taxpayers?

A: The government has a crucial role in implementing extensification by providing adequate education and training to taxpayers, increasing public awareness of taxation responsibilities, and creating a sense of community participation and ownership in the development process. The government must also address the issue of tax evasion and non-compliance.

Q: What is the impact of extensification on the economy?

A: The impact of extensification on the economy is positive, as it increases tax revenue and community participation in the development process. It also helps to create a sense of community ownership and participation in the development process.

Q: How can extensification be evaluated and assessed in increasing the number of taxpayers?

A: Extensification can be evaluated and assessed through various indicators, including the number of taxpayers, tax revenue, and community participation. The government must also assess the effectiveness of extensification in increasing the number of taxpayers and tax revenue.

Q: What are the future directions of extensification in increasing the number of taxpayers?

A: The future directions of extensification include increasing public awareness of taxation responsibilities, creating a sense of community participation and ownership in the development process, and addressing the issue of tax evasion and non-compliance. The government must also continue to evaluate and renew tax policies to increase tax revenue and community participation.