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)