Tax collections exceed target

JAKARTA (JP): The government collected Rp 95.57 trillion (US$12.74 billion) in income, sales, value-added and property taxes in the fiscal year which ended on Friday, about 3 percent above the Rp 92.14 trillion target.

Director General of Taxation Mahfudh Sidik announced the results as the deadline for people to send in their tax returns neared.

"We still have until 6 p.m. to collect additional revenue," he said during a visit by members of House of Representatives Commission IX for financial affairs to the Kalibata tax office in South Jakarta.

The tax directorate collects income taxes, value-added taxes, sales taxes on luxury goods, land and property taxes, and tax on the transfer of property ownership. Other taxes such as excise, import duties and export taxes are collected by the directorate general of customs and excise.

Total tax receipts from the non-oil and gas sector were expected to bring in Rp 145.39 trillion of the Rp 201.69 trillion total state revenue in the just concluded fiscal year.

Total income taxes in 1999/2000 reached Rp 58 trillion against a target of Rp 54.94 trillion, while income from land and property taxes and taxes on the transfer of property ownership totaled Rp 4 trillion compared to a target of Rp 3.65 trillion.

Value-added taxes and sales taxes on luxury goods reached Rp 32.90 trillion against a target of Rp 32.98 trillion. Revenue collected under the category of "other taxes" reached Rp 565.9 billion compared to a target of Rp 568.53 billion.

In spite of exceeding the targets, Mahfudh said 1999/2000 had been a difficult year in terms of collecting taxes because of the lingering impact of the economic crisis.

"Tax collection during a crisis cannot be too aggressive because it could be counterproductive," he said.

On the plan to amend tax laws, Mahfudh said the government was preparing several bills currently being reviewed by the Ministry of Finance and the Ministry of Industry and Trade.

"Hopefully they will be ready in April and submitted to the House," he said.

The bills are on income tax, general tax provisions and procedures, on value-added tax on goods and services and sales tax on luxury goods.

These amendments are aimed at netting more taxpayers and collecting more revenue for the government. (10)