Taxpayer compliance is very important in the tax system because it can ensure that the state gets enough revenue to finance public needs and promote development. In addition, taxpayer compliance can also improve the effectiveness and efficiency of tax administration.
Here are some reasons why taxpayer compliance is so important:
- Improving social justice: Tax is a form of mandatory contribution for every citizen to finance public needs such as education, health, infrastructure, and so on. Thus, taxpayer compliance can help create social justice in society.
- Increase state revenue: Tax revenue is one of the major sources of state income. With high taxpayer compliance, the state can earn enough revenue to finance national development activities and provide quality public services.
- Reducing socio-economic disparities: High tax revenue can be used to help reduce socio-economic disparities in society by providing assistance and subsidies to needy groups.
- Improving the country’s image: A country with a good tax system and a tax-compliant society will have a positive image in the eyes of the international community. This can help increase foreign investment and tourism which in turn can increase eco-growth.
- Increase the efficiency of tax administration: With high taxpayer compliance, tax administration can run more effectively and efficiently because the data and information received from taxpayers is more accurate and transparent.
Therefore, it is important for every taxpayer to understand and comply with tax regulations properly and honestly. Taxpayer compliance will bring good benefits to the country and society as a whole.