Megawati asks tax office to improve image

Megawati asks tax office to improve image

Urip Hudiono, The Jakarta Post, Jakarta

President Megawati Soekarnoputri has asked the Ministry of
Finance's Directorate General of Taxation to further improve its
image, and continually strive to increase state revenue from
taxes.

"We are still hearing of taxpayers who meet with tax officials
to negotiate (illegal) settlements of their taxes," she said
during a ceremony on Tuesday marking the filing of their annual
tax returns (SPT) by top politicians and state officials.

Besides Megawati, other top state officials who also filed
their SPTs during the event were the speaker of the People's
Consultative Assembly (MPR) Amien Rais, Vice President Hamzah
Haz, Chief Justice Bagir Manan, Constitutional Court President
Jimly Asshiddiqie, Supreme Audit Agency (BPK) head Satrio "Billy"
Budiharjo Joedono, and Minister of Finance Boediono.

Such adverse comments, however, should not dishearten tax
officials, Megawati continued, but should instead encourage them
to improve their performance.

"So in the end, people can rest assured that the taxes they
have paid are turned over to the state and are used for the
benefit of the public at large," she said.

The tax office has long been seen as one of the most corrupt
institutions in the country. The government is currently carrying
out a reform program aimed partly at curbing corruption there.

Megawati also asked the Directorate General to further
increase tax collection, saying that this was essential if
Indonesia really wanted to fully finance its state budget without
having to resort to foreign borrowing.

Commenting on the President's request, Director General of
Taxation Hadi Purnomo said that his office was determined to
raise tax revenue by increasing the number of taxpayers by an
average of 100,000 per year.

"We will also continue to take resolute legal action against
tax evaders, including detaining them if necessary, and imposing
sanctions on corrupt tax officials," he said.

Hadi explained that his office had set itself a revenue target
of Rp 216 trillion (US$25.4 billion) from taxation this year,
contributing about 13.5 percent to Indonesia's gross domestic
product (GDP).

Last year, revenue was Rp 192 trillion, and contributed 11
percent to the country's GDP.

Tax revenue during the January to February period of this year
reached Rp 29 trillion.

Previously, an expert advisor to the Directorate General,
Djangkung Sudjarwadi, explained that accumulated tax arrears as
of January stood at Rp 26 trillion.