Three students from the Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), won 1st place in the 2024 Digital Accounting Competition organized by Ikatan Akuntan Indonesia Muda (Young Indonesian Accountants Association), East Java—Jember Chapter. The competition took place from December 25, 2024, to February 25, 2024. The winning team included Muhammad Reza Pahlefy (Business Administration 2022), Brian Egbert (Business Administration 2022), and Muhammad Firza Arizian (Business Administration 2022).

The team chose Value-Added Tax (VAT) as their sub-theme due to its close relationship with business processes—particularly production, distribution, and its significant contribution to state revenue. “Although VAT is known as a money-maker for the government, as it constitutes a large portion of annual tax revenue and almost all citizens pay VAT at some point, many people remain unaware of their tax contributions through VAT. This highlights the importance of raising public awareness, especially among Generation Z, about VAT’s role in the broader taxation system,” Reza explained.

According to Brian, Generation Z is now stepping into the role of change agents in tax policy decision-making. They are expected to do more than just fulfill their tax obligations—they should also act as innovators, policy drivers, and economic players who contribute to shaping more adaptive and resilient tax regulations for the future.

“Furthermore, Gen Z’s support for local economic growth, particularly through active participation in small and medium enterprises (SMEs), can significantly enhance regional tax revenues. This is why tax education is crucial for Generation Z—helping them understand their tax obligations and their broader impact on social and economic development,” Brian added.

Firza emphasized that tax literacy will empower Generation Z to contribute more effectively to the formation of inclusive and sustainable tax policies in Indonesia. The team’s research on VAT underscores the urgency for active participation and contributions from Gen Z in shaping the country’s tax policy and system development.

Through their VAT-focused presentation, the team successfully secured 1st place in the competition. “Since we are currently pursuing professional certification in taxation and accounting, we aligned our work with business policies that conform to existing tax regulations. Our preparation involved studying intensively while simultaneously applying the knowledge in the competition,” Firza said.

With a background in business administration, the team had to deepen their tax knowledge to succeed in the competition. “Given the frequent updates to tax regulations, we had to constantly verify that the tax laws we referenced—especially those related to VAT, Luxury Goods Sales Tax (PPnBM), the Harmonization of Tax Regulations Law (UU HPP), and various government regulations (PMK, Perpu, PB1)—were accurate and up-to-date. This experience taught us that learning about taxation is an ongoing process—you must keep learning to stay current with the latest tax laws,” Reza concluded.