Indonesia to lift tax revenue
JAKARTA - INDONESIA'S new tax chief said on Monday he would take a tough stance against tax-dodgers in order to raise tax revenues, adding that the largest tax case in Southeast Asia's biggest economy will come to court soon.
Mr Mochamad Tjiptardjo, who took over as head of the tax department last month, must boost tax revenues significantly to meet the government's ambitious target in a country where tax evasion has been routine.
Tax and customs, two departments plagued by corruption for years, have been at the forefront of Finance Minister Sri Mulyani Indrawati's reform drive. By reducing graft and streamlining services, the finance ministry has increased revenue collection, but economists still see plenty of scope for improvement.
President Susilo Bambang Yudhoyono, who was re-elected in a landslide victory in July, said earlier this month that Indonesia must raise 729.2 trillion rupiah (S$105.4 trillion) in taxes for the 2010 state budget, up 12 per cent from this year's target of 652 trillion rupiah.
To do so will require better law enforcement, Mr Tjiptardjo said, adding that he plans to deploy 'tax spies' abroad to track down tax evaders, and use technology to reduce graft and improve data collection.
'We will uphold the law. In the US and other developed countries, the law is really enforced and that is what we're trying to do,' he told Reuters in an interview.
Mr Tjiptardjo did not give details of where he would step up his tax intelligence network. But many wealthy Indonesians keep their assets offshore in Singapore, Hong Kong, China and the United States.
Local media have reported that some Indonesian exporters keep their funds offshore, mainly in Singapore, where the tax rate is lower.
Mr Mochamad Tjiptardjo, who took over as head of the tax department last month, must boost tax revenues significantly to meet the government's ambitious target in a country where tax evasion has been routine.
Tax and customs, two departments plagued by corruption for years, have been at the forefront of Finance Minister Sri Mulyani Indrawati's reform drive. By reducing graft and streamlining services, the finance ministry has increased revenue collection, but economists still see plenty of scope for improvement.
President Susilo Bambang Yudhoyono, who was re-elected in a landslide victory in July, said earlier this month that Indonesia must raise 729.2 trillion rupiah (S$105.4 trillion) in taxes for the 2010 state budget, up 12 per cent from this year's target of 652 trillion rupiah.
To do so will require better law enforcement, Mr Tjiptardjo said, adding that he plans to deploy 'tax spies' abroad to track down tax evaders, and use technology to reduce graft and improve data collection.
'We will uphold the law. In the US and other developed countries, the law is really enforced and that is what we're trying to do,' he told Reuters in an interview.
Mr Tjiptardjo did not give details of where he would step up his tax intelligence network. But many wealthy Indonesians keep their assets offshore in Singapore, Hong Kong, China and the United States.
Local media have reported that some Indonesian exporters keep their funds offshore, mainly in Singapore, where the tax rate is lower.