Incoming Indonesian Tax Chief Promises to Chase Down Cheaters
Mochamad Tjiptardjo, the country’s new top taxation official, pledged at his swearing-in ceremony on Tuesday to do his best to hit tax-revenue targets this year and continue the government’s efforts to chase down tax evaders, especially big corporations.
Tax revenues are under threat this year due to the fallout from the global economic slowdown, and collection is expected to fall.
The government expects Rp 587 trillion ($59.2 billion) in tax revenues this year, but by June it had only collected 43 percent of that target, or Rp 252 trillion.
It had expected to take in about 49 percent of its full-year target in the first half.
“I will take measures to secure tax revenue targets,” said Tjiptardjo, the new directorate general for taxation. “There are still six months to go.”
The 58-year-old official has dedicated more than 30 years of his life to government service. He joined the tax office in 1975, and since then has headed a number of regional tax offices throughout the country. He most recently headed the intelligence and investigation unit at the national directorate general.
“We have to work hard, by extending and intensifying tax collection,” he said.
Tjiptardjo was officially inaugurated on Tuesday at the Finance Ministry’s headquarters in Jakarta. He replaced Darmin Nasution, who had been selected as the senior deputy governor at Bank Indonesia and who is acting governor until a replacement is named.
Given his reform credentials, Tjiptardjo is widely expected to carry on the work of Darmin, who has been credited for playing a significant role in overseeing the first phase of the tax office’s reform process.
Finance Minister Sri Mulyani Indrawati, speaking at Tjiptardjo’s swearing-in ceremony, said he had been chosen to represent a new generation of tax officials.
As a career bureaucrat with years of experience in the tax directorate, Tjiptardjo will be expected to manage the department and work aggressively to implement key reforms, Sri Mulyani said.
“You all are at the peak of your careers,” she said, addressing tax officials at the ceremony. “Put yourselves in God’s hands for this country.”
The taxation office used to be known as one of the country’s most corrupt institutions. Tax officials were said to be eager to accept bribes, especially when dealing with large business conglomerates.
Darmin, however, successfully clamped down on tax evasion and increased the number of registered taxpayers from 3.2 million people in 2002 to 14.48 million in May of this year.
Under Darmin’s watch, tax receipts also increased dramatically, surging from Rp 176.2 trillion in 2002 to Rp 571.1 trillion last year.
Many taxation analysts have said the increase in revenue was largely due to the taxation office’s tougher stance against offenders.
Tjiptardjo also said he would continue the Finance Ministry’s efforts to bring major tax offenders to justice.
Specifically, he pledged to continue the ministry’s pursuit of palm-oil producer PT Asian Agri for allegedly evading Rp 1.3 trillion in taxes.
Tax revenues are under threat this year due to the fallout from the global economic slowdown, and collection is expected to fall.
The government expects Rp 587 trillion ($59.2 billion) in tax revenues this year, but by June it had only collected 43 percent of that target, or Rp 252 trillion.
It had expected to take in about 49 percent of its full-year target in the first half.
“I will take measures to secure tax revenue targets,” said Tjiptardjo, the new directorate general for taxation. “There are still six months to go.”
The 58-year-old official has dedicated more than 30 years of his life to government service. He joined the tax office in 1975, and since then has headed a number of regional tax offices throughout the country. He most recently headed the intelligence and investigation unit at the national directorate general.
“We have to work hard, by extending and intensifying tax collection,” he said.
Tjiptardjo was officially inaugurated on Tuesday at the Finance Ministry’s headquarters in Jakarta. He replaced Darmin Nasution, who had been selected as the senior deputy governor at Bank Indonesia and who is acting governor until a replacement is named.
Given his reform credentials, Tjiptardjo is widely expected to carry on the work of Darmin, who has been credited for playing a significant role in overseeing the first phase of the tax office’s reform process.
Finance Minister Sri Mulyani Indrawati, speaking at Tjiptardjo’s swearing-in ceremony, said he had been chosen to represent a new generation of tax officials.
As a career bureaucrat with years of experience in the tax directorate, Tjiptardjo will be expected to manage the department and work aggressively to implement key reforms, Sri Mulyani said.
“You all are at the peak of your careers,” she said, addressing tax officials at the ceremony. “Put yourselves in God’s hands for this country.”
The taxation office used to be known as one of the country’s most corrupt institutions. Tax officials were said to be eager to accept bribes, especially when dealing with large business conglomerates.
Darmin, however, successfully clamped down on tax evasion and increased the number of registered taxpayers from 3.2 million people in 2002 to 14.48 million in May of this year.
Under Darmin’s watch, tax receipts also increased dramatically, surging from Rp 176.2 trillion in 2002 to Rp 571.1 trillion last year.
Many taxation analysts have said the increase in revenue was largely due to the taxation office’s tougher stance against offenders.
Tjiptardjo also said he would continue the Finance Ministry’s efforts to bring major tax offenders to justice.
Specifically, he pledged to continue the ministry’s pursuit of palm-oil producer PT Asian Agri for allegedly evading Rp 1.3 trillion in taxes.