Jakarta (ANTARA News) - Finance Minister Sri Mulyani said the government would strive to increase its nominal income from taxes by 17 percent a year.
"With regard to policy the state`s income will be dominated by tax income rising from 78 percent to 84 percent and the tax ratio will rise in line with the annual tax hike predicted to reach nominally 17 percent a year," she said here on Friday.
So, she said it was hoped in 2014 the tax income would reach Rp1,200 trillion. This would support state expenditure expected to reach Rp1,700 trillion in the year, she said.
She said the government would intensify personal tax income. In view of that she said the central government would coordinate with the regional administrations with regard to identifying taxpayers.
She said the rising number of taxpayers would also give an incentive to the regions concerned.
"As it is a personal tax income we appeal it could be directly shared," she said.
The reduction of corporate and personal income tax tariff has been mandated by the new law on income tax.
She said based on the law corporate income tax would drop from formerly 30 percent to 28 percent next year and 25 percent in the year afterward.
The personal tax tariff meanwhile is reduced from 35 to 30 percent with people earning less than Rp15.8 million a year being untaxable, she said, adding the limit of untaxable earnings had been raised from earlier Rp15.2 million a year.
She said the government would give a tax incentive to listed companies so that the stock exchange would be filled with various companies particularly from the regions.
She said the government would also improve the taxation basis and profiling as well as mapping.
She said corporate tax would remain a reliable source of income although incentive would be given selectively. She hoped the corporate tax would create a burden.
She said the government would also harmonize tariffs because tariffs on various commodities entering the country were now reaching zero percent while "our country is flooded by imported goods." (*)