House asks govt to raise tax revenue target for 2003<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The House of Representatives is urging the government to revise
\nsome of the expenditure and revenue figures in the draft 2003
\nstate budget to make it more responsive to current global
\neconomic developments and the real needs of the economy.<\/p>\n
\"Everything (from the budget) needs some adjustment in both
\nstate revenues and expenditures,\" chairman of the House budget
\ncommission Abdullah Zainie told reporters after a budget
\ndeliberation with the finance ministry's director general for
\nstate budget Anshari Ritonga on Tuesday.<\/p>\n
On the revenue side, Zainie said that the proposed tax revenue
\ntarget for 2003 could still be increased to help the budget in
\nfinancing the economic development program.<\/p>\n
As stated in the state budget draft, presented by the
\ngovernment last month before legislators, tax income for 2003 was
\ntargeted to stand at Rp 260.8 trillion (US$29.2 billion), or 13.3
\npercent of gross domestic product.<\/p>\n
Zainie said that the tax ratio could still be raised to 3.5
\npercent.<\/p>\n
This should come as a surprise amid concern from businessmen
\nstating that the target proposed earlier by the government would
\nhurt businesses due to current economic difficulties and
\nshrinking export markets overseas.<\/p>\n
In comparison, the tax target for this year has been set at Rp
\n219.6 trillion, which accounts for some 13 percent of GDP.<\/p>\n
Zainie also asked the government to allocate more funds to the
\ndevelopment program, which was set at Rp 54.5 trillion under the
\nproposed budget.<\/p>\n
He said that such a meager amount would be insufficient to
\ngenerate economic activities to push economic growth.<\/p>\n
In percentage terms, the amount was less than the target for
\nthis year. The targeted spending for development for 2003
\naccounts for only 2.8 percent of GDP, compared with 3.1 percent
\nthis year.<\/p>\n
According to Zainie, the government should also take into
\nconsideration the latest developments worldwide in determining
\nassumptions for the oil price, which for 2003 has been set at
\n$20.50 per barrel.<\/p>\n
\"Under the current circumstances, it's possible for the price
\nto rise to $22 per barrel,\" he added.<\/p>\n
He was referring to the increasing political tension in the
\nMiddle East, triggered by threats from the U.S. to launch an
\nattack on Iraq, which has sent the international oil price to
\nabout $29 per dollar.<\/p>\n
The House and the government will continue their deliberations
\nnext week.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-asks-govt-to-raise-tax-revenue-target-for-2003-1447893297",
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