The Ministry of Finance's Directorate General of Taxation announced Friday a 42.7 percent jump in tax revenue during the first quarter of 2008 on the back of strong corporate sector income growth and a vibrant economy.
Tax revenue from the non-oil and gas sector rose to Rp 113.53 trillion (US$12.3 billion) between January and March, up from Rp 79.55 trillion in the same period last year, director general of taxation Darmin Nasution said.
"Stronger corporate income, greater economic transactions and intense efforts on our part to net more taxpayers are the primary factors pushing our income higher," said Darmin.
Tax revenue from oil and gas during the first quarter reached Rp 14.43 trillion, up from Rp 5.79 trillion a year earlier.
"The growth in our tax revenue (during the first quarter) is the highest in 5 years," said Darmin.
Revenue from income tax grew by 40 percent, Darmin reported, while income from property tax was up 44.1 percent and from value-added tax 48.6 percent.
The government projected a tax revenue of Rp 523.85 trillion for this year's state budget, up by 26.6 percent from Rp 426.23 trillion.
Since the Asian financial crisis in late 1997, Indonesia has relied heavily on taxes to fill the state coffers. At present, around 80 percent of the state's income is derived from taxes.
However, the tax directorate has estimated that less than 3.5 million individuals and institutions pay taxes.