“Dear Mr. Wayan Balmond,
Your job application has been reviewed and approved.
We are delighted to inform that you are selected for the job.
Please confirm your acceptance for final check.
Best Regards,
HR of Zayno Partee. “
The long-awaited e-mail finally rings on the phone of a Gen Z from Canggu, who just starting to have his career as a chef in a vegetarian restaurant in South Jakarta (Jaksel). No wonder, his LinkedIn portfolio shows enormous achievements in fruit carving competitions.
Maybe he is not as privileged as those who can be a startup coffee shop founder from their parents' savings, but he managed to complete his scholarship to become a Bachelor of Culinary Arts Management. His recruiter had no doubts about his quality, especially based on his impressive interview and no track record of hate speech using Twitter alter accounts.
However, one day he complained, "Why is my salary ends up being deducted for taxes higher than my co-workers?"
Expanding the Tax Base with JUSTIN
Generation Z (Gen Z) consists of people born between 1997 and 2012 (William H. Frey, 2020). Based on the 2020 Population Census Result published by Statistics Indonesia (BPS), Gen Z dominates at 75.49 million people or 27.94% of Indonesia’s total population. In 2023, Gen Z will be between 11-26 years old, which means that some of them have started to enter productive age, while the rest is still hoping their crush will be the fifth person on their Instagram share icon.
After obtaining an Electronic ID Card (e-KTP) and having a net income of more than Rp54 million, a productive Gen Z who is already 18 years old is required to register as a taxpayer because they have met the subjective and objective criteria set out in Director General of Taxes Regulation No. PER-04/PJ/2020. The registration process is very easy, as it can be done online at ereg.pajak.go.id using only the National Identification Number.
Following Minister of Finance Regulation No. PMK-112/PMK.03/2022, Directorate General of Taxes (DGT) is currently implementing tax reform, one of which is aimed at enabling Gen Z to become a JUSTIN (Juniors of Single Taxpayer Identification Number). Therefore, the e-KTP can be used as a Taxpayer Identification Number Card (NPWP), and the Article 21 Income Tax (PPh 21) deducted by the employer becomes 20% lower than those who have not become a JUSTIN.
Self-Reward = Self-Assessment
To maintain mental health after a year of hustling and submitting the Annual Income Tax Return before March 31 through e-Filing as self-assessment, we still need to implement the work-life balance, a state of equilibrium between the demands of work and an individual's personal life (Lockwood, 2003).
One type of self-reward that Gen Z often engages in is by adopting the Jaksel Lifestyle. This lifestyle contributes to economic turnover, which also involves taxes.
1. Café Hopping
Instagrammable is the standard for a café to be in the save now-visit later list by Gen Z, especially if the place is considered a hidden gem. To avoid being red-flagged on their first date, a true GenZtleman refuses to split the bill, including Restaurant Tax (generally at 10%) managed by the local government.
2. Movie Critics
From “Evil Dead Rise” to “The Little Mermaid” have accompanied Gen Z who likes to fall asleep in a dark room on Wednesday night, then write a “6.5/10” review. The movie ticket purchased from the cinema already includes Entertainment Tax. Conversely, for introverts who prefer watching movies on Netflix, it only surcharges for Value-Added Tax (VAT) on sales of digital products (PMSE) at 11%.
3. Part-time Traveler
“Look at the stars. Look how they shine for you.”
What a dream comes true, seeing the sky full of stars in Merlion Park. Currently, plane tickets and hotels can be easily booked through an Online Travel Agent (OTA) application, e.g., Booking.com, which also charges VAT for its online services. However, the local government also imposes Entertainment Tax if a concert is held in Indonesia.
Jaksel Lifestyle enhances us that there are central taxes (VAT) managed by DGT, and there are local taxes (Restaurant and Entertainment Taxes) managed by the local government. Both are forms of synergy in maintaining economic stability through taxes.
Taxes are Contribution
"Why does self-reward have to be taxed? Paying taxes actually makes my savings unstable!"
This implies that whatever the policy is, it will constantly become an issue if we always view it from negative perspective. Have we ever considered that without taxes, how would this country sustain itself when facing uncertain economic upheavals? Integrity is identity. Holding trust in managing a country's revenue is a significant responsibility.
Living in uncertainty is the toughest challenge for MSMEs and business owners in accommodations, restaurants, and other affected sectors during the Covid-19 pandemic. For those who have a stable source of income, it is commendable to set aside your financial freedom savings to support employees who are struggling to revive their family's economy. Just like this country, it needs our contribution through taxes.
The grass is not always greener. It feels hypocritical to perpetually complain on what tax policy that makes everyone happy, while we have never paid attention to what extend taxes have relieved our family. With a total tax revenue of Rp1,716.8 trillion in 2022, representing a growth of 34.3%, taxes have mostly helped to provide affordable basic needs from Sabang to Merauke through fuel and LPG subsidies, also social assistance.
The Indonesian economy has recovered since the resumption of physical activity in 2023. There are many new job opportunities, especially for Gen Z. By being a JUSTIN, regardless of what we do for living, we can make a real contribution to tax reform by ensuring that taxes will continue to make Indonesia’s economic resilient.
"What happens If I don't pay taxes?"
Let's stop being self-centered. Taxes are not about how neat we can evade the government, but how sincere we contribute to the welfare of our own nation.
