Tax revenue reaches Rp 105t as of August

Tax revenue reaches Rp 105t as of August

JAKARTA (JP): Total tax receipts until the end of August have reached Rp 105.3 trillion (US$11.32 billion), or around 67 percent of the 2001 tax revenue target of Rp 156 trillion, Director General of Taxation Hadi Poernomo said on Monday.

Speaking to reporters on the sidelines of a ceremony at the finance ministry, Hadi said that the tax office's collection strategy had been focussed on "intensification" and broadening the tax base.

He said that the strategy had shown encouraging results as reflected in the increase in non-oil and gas income tax revenue from Rp 4.3 trillion in February to Rp 5.8 trillion at the end of August.

Hadi said the country now had around 1.9 million individual taxpayers.

He expressed optimism that by 2004, Indonesia's tax ratio would amount to 16 percent of gross domestic product, compared to the current ratio of 12 percent, and the 12.8 percent target for 2002.

"We are optimistic that the 16 percent tax ratio target for 2004 will be met," he said, adding that his office would continue expanding the tax base and improving tax collection.

The government has targeted tax receipts of Rp 216.8 trillion in the 2002 draft state budget.

Hadi defended the government's decision to limit the tax ratio target to 12.8 percent of GDP for fiscal 2002, instead of 13.6 percent as proposed by the House of Representatives (DPR).

"The 13.6 target for fiscal year 2002 could not be achieved because of a decrease in income tax revenue from the oil and gas sector due to production cuts, the strengthening of the rupiah and the lower crude oil price assumption," he argued.

"But the decrease could be offset by an increase in oil and gas prices," he added.

The price of oil and gas have gone up by an average of US$2 per barrel following the terrorist attacks on New York's World Trade Center twin towers which shook the world's financial center. (03)