Govt collects Rp 157t in tax revenue

The Jakarta Post, Jakarta

The government said it had collected some Rp 157 trillion (US$17.25 billion) in tax revenue as of the end of September, or 66 percent of the full-year target.

"The figure is 113.6 percent higher compared to what we managed to collect during the same period last year," Director General of Taxation Hadi Purnomo said on Monday.

The collected taxes, excluding excise and import duty, comprised of Rp 75 trillion from non-oil and gas income tax, Rp 15 trillion from oil and gas income tax, Rp 56.8 trillion from value-added tax, Rp 8.5 trillion from land and building tax, and the remainder from other taxes.

"While the tax restitution totaled Rp 16.3 trillion, or 130 percent higher than the same period last year," he said.

Hadi was optimistic the year's tax target would be met as the directorate general was speeding up efforts to make improvements, especially by establishing a stronger database of taxpayers.

He did not provide further details.

Previously, Hadi said a boost to tax revenue was expected during the festivities took place around the end of the year.

The level of consumption usually increases during this festivity period, which results in higher revenue of value-added tax from sold goods.

The government has revised upward its tax target for this year to Rp 279.2 trillion from Rp 260.2 trillion.

While for the 2005 fiscal year, the government expects to rake in up to Rp 297.84 trillion in taxes.

Tax has increasingly become a key finance source for the state budget as the government tries to significantly reduce the country's already high foreign-debt level.