Income tax revenues pass target

Income tax revenues pass target

JAKARTA (JP): Director General of Taxes Fuad Bawazier said that income tax revenues as of yesterday had reached Rp 20.5 trillion (US$8.7 billion), exceeding the target of Rp 19.2 trillion set for the current fiscal year, ending on March 31.

"I'm optimistic that the revenues will increase further as there are still three days for taxpayers to fulfill their duties," Fuad told members of the Budgetary Commission of the House of Representatives after visiting two tax offices yesterday.

He said that because the current fiscal year will end in three days, the Directorate General of Taxes will open its offices on Saturday and Sunday (March 30 and 31) to handle annual income tax returns.

Fuad attributed the tax revenue increase to the simplification of the tax procedures and the tax rate cuts issued in January 1995.

Tax procedures were simplified under the new tax laws, which were passed by the House of Representatives in October 1994 and which took effect on Jan. 1, 1995.

Its main features include an increase in the basic deductions allowed and a narrowing of income tax brackets.

Fuad noted that income tax revenues from companies listed on domestic stock exchanges reached Rp 3.8 trillion as of yesterday, exceeding the target of Rp 2.9 trillion for the current fiscal year.(13)