Govt collects Rp 157t in tax revenue

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.