Minister of Finance Sri Mulyani Indrawati said on Thursday the so-called “Sunset Policy” contributed Rp 5.56 trillion ($489.28 million) in additional tax revenue last year, equal to 15.2 percent of last year’s total tax surplus.
The revised 2008 national budget contained a tax revenue target of Rp 534.5 trillion, but the government ended up exceeding its collection target by Rp 36.57 trillion.
The ministry said that while part of the tax windfall could be attributed to the boom in global commodities prices in early 2008, the registration of more taxpayers with the help of the sunset policy also boosted revenue.
The policy waived penalties and administrative charges both for individuals who registered for a tax number, or NPWP, and those who planned to submit corrections for their tax returns.
According to a document presented at the House of Representatives’ Commission XI, which oversees the national budget, Indonesia recorded a sharp increase in the number of newly registered taxpayers in December as people took advantage of the waivers.
The document showed that between January and September 2008, an average of 118,663 people applied for NPWPs each month.
“It shows that the tax payers were taking advantage of the sunset policy,” Sri Mulyani said, adding that even “until January, the interest among taxpayers in taking advantage of the Sunset Policy program remains high.”
The government has extended Sunset Policy eligibility to Feb. 28 for new NPWP registrations and March 31 for corrections.