Government raises tax, excise revenue target<\/p>\n
Dadan Wijaksana, Jakarta<\/p>\n
The House of Representatives' State Budget Commission has
\napproved a government proposal to increase the tax and excise
\nrevenue target for next year, according to officials.<\/p>\n
Director General of Taxation Hadi Purnomo said on Monday the
\ncommission had agreed to raise the revenue target for his office
\nfrom Rp 209 trillion this year to Rp 232 trillion (US$25.05
\nbillion) in 2005.<\/p>\n
However, this target only covers revenue directly collected by
\nthe tax office, thus excluding revenue from oil and gas income
\nand from the customs and excise office, Hadi said.<\/p>\n
The tax office and the customs and excise office are two
\nseparate units under the current state revenue collection system,
\nbut both serve under the finance ministry.<\/p>\n
To meet the revenue target, Hadi said his office would
\nintensify collection from new taxpayers, although he did not go
\ninto detail.<\/p>\n
As of the third week of May, the tax office had collected Rp
\n78 trillion, or some 33 percent of the full-year target of Rp 209
\ntrillion.<\/p>\n
Meanwhile, Director General of Customs and Excise Eddy
\nAbdurrachman said that the revenue target for his office had been
\nincreased to Rp 40.9 trillion in 2005 from this year's target of
\nRp 39.2 trillion.<\/p>\n
\"The number comes from the Rp 28.9 trillion excise target plus
\nRp 12 trillion from import duties,\" Eddy said. These figures
\nreflect a rise from this year's targets of Rp 27.6 trillion and
\nRp 11.6 trillion respectively.<\/p>\n
Despite the target hike, Eddy said the government had yet to
\ndecide whether to raise excise rates on cigarettes and alcoholic
\nbeverages in 2005.<\/p>\n
While saying the final decision would be made by the minister
\nof finance, Eddy claimed the absence of such a hike this year had
\nincreased excise revenue.<\/p>\n
\"My calculations for this year show that excise income could
\nreach more than the target of Rp 27.6 trillion, maybe to around
\nRp 27.8 trillion,\" he said.<\/p>\n
Before this year, the government had raised the excise tax on
\ncigarettes five times since 1999. For example, the price of
\nmachine-made clove cigarettes is now three times higher than in
\n1999.<\/p>\n
Some 90 percent of the government's excise revenue comes from
\ncigarettes, with the liquor industry accounting for the
\nremainder.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-raises-tax-excise-revenue-target-1447893297",
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