Megawati asks tax office to improve image<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
President Megawati Soekarnoputri has asked the Ministry of
\nFinance's Directorate General of Taxation to further improve its
\nimage, and continually strive to increase state revenue from
\ntaxes.<\/p>\n
\"We are still hearing of taxpayers who meet with tax officials
\nto negotiate (illegal) settlements of their taxes,\" she said
\nduring a ceremony on Tuesday marking the filing of their annual
\ntax returns (SPT) by top politicians and state officials.<\/p>\n
Besides Megawati, other top state officials who also filed
\ntheir SPTs during the event were the speaker of the People's
\nConsultative Assembly (MPR) Amien Rais, Vice President Hamzah
\nHaz, Chief Justice Bagir Manan, Constitutional Court President
\nJimly Asshiddiqie, Supreme Audit Agency (BPK) head Satrio \"Billy\"
\nBudiharjo Joedono, and Minister of Finance Boediono.<\/p>\n
Such adverse comments, however, should not dishearten tax
\nofficials, Megawati continued, but should instead encourage them
\nto improve their performance.<\/p>\n
\"So in the end, people can rest assured that the taxes they
\nhave paid are turned over to the state and are used for the
\nbenefit of the public at large,\" she said.<\/p>\n
The tax office has long been seen as one of the most corrupt
\ninstitutions in the country. The government is currently carrying
\nout a reform program aimed partly at curbing corruption there.<\/p>\n
Megawati also asked the Directorate General to further
\nincrease tax collection, saying that this was essential if
\nIndonesia really wanted to fully finance its state budget without
\nhaving to resort to foreign borrowing.<\/p>\n
Commenting on the President's request, Director General of
\nTaxation Hadi Purnomo said that his office was determined to
\nraise tax revenue by increasing the number of taxpayers by an
\naverage of 100,000 per year.<\/p>\n
\"We will also continue to take resolute legal action against
\ntax evaders, including detaining them if necessary, and imposing
\nsanctions on corrupt tax officials,\" he said.<\/p>\n
Hadi explained that his office had set itself a revenue target
\nof Rp 216 trillion (US$25.4 billion) from taxation this year,
\ncontributing about 13.5 percent to Indonesia's gross domestic
\nproduct (GDP).<\/p>\n
Last year, revenue was Rp 192 trillion, and contributed 11
\npercent to the country's GDP.<\/p>\n
Tax revenue during the January to February period of this year
\nreached Rp 29 trillion.<\/p>\n
Previously, an expert advisor to the Directorate General,
\nDjangkung Sudjarwadi, explained that accumulated tax arrears as
\nof January stood at Rp 26 trillion.<\/p>",
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