What is Coretax

Coretax is a taxation system designed to simplify tax administration in Indonesia. This system aims to improve tax compliance by utilizing digital technology and providing convenience for taxpayers in fulfilling their obligations. According to Tofan (2023), coretax is a strategic step by the government to improve the existing taxation system, especially in sectors that have been neglected, such as agriculture. Coretax is expected to create transparency and accountability in tax management, making it easier for the government to supervise and enforce tax laws. 

Benefits of Coretax for Agriculture

The agricultural sector is one of the pillars of the Indonesian economy, and its contribution to the Gross Domestic Product (GDP) reaches around 13% (Kemenkeu RI, 2024). Coretax is expected to provide significant benefits to this sector, including simplifying the tax reporting process, increasing access to information, and reducing tax compliance costs. With this system, farmers will find it easier to understand their tax obligations and can focus more on their farming businesses. Dimetheo et al. (2023) noted that the implementation of coretax can increase tax compliance among farmers, which has been relatively low due to a lack of understanding about taxes. 

Impact on Small Farmers

Although coretax has many benefits, its impact on small farmers needs to be considered. Small farmers often have limited access to information and technology, so they may find it difficult to adapt to this new system. Panjaitan and Yuna (2024) mentioned that small farmers may feel burdened by the new tax obligations, especially if they do not receive adequate support from the government in the form of education and training. Therefore, it is important for the government to provide comprehensive outreach to small farmers so that they can understand and utilize coretax properly.