Tax revenue target for non-oil sectors exceeded

JAKARTA (JP): Minister of Finance Fuad Bawazier estimated that government tax revenues from non-oil sectors for the 1997/1998 fiscal year ending yesterday totaled Rp 62.42 trillion, or 11 percent higher than the Rp 56.14 trillion budget target.

The minister, who is also the director general of taxation, said the higher-than-projected tax revenues were due to larger income tax receipts accrued from bank depositors profiting from high interest rates.

"This is really good news that we can achieve such a good total during the economic crisis," he told reporters yesterday.

"Export taxes also made a large contribution to tax revenues," he said while accompanying legislators visiting tax offices to observe taxpayers trying to beat yesterday's filing deadline for 1997 annual income tax returns.

The minister and the House members made on-the-spot inspections of tax offices in Tanah Abang, Central Jakarta, and Kebon Jeruk, West Jakarta.

Attorney General Soedjono Chanafiah Atmonegoro was with the finance minister when he announced the estimated tax revenue totals.

Fuad, however, did not elaborate on 1997/1998 tax revenues from value added taxes, income taxes and property taxes.

"Revenues from value added taxes and income taxes exceeded budget targets," he said giving no further details.

The Directorate General of Taxation oversees the collection of value added taxes and income taxes from all sectors, except from the oil and natural gas and the property sectors.

The collection of other taxes, such as export and import taxes and excise taxes, is the responsibility of the Directorate General of Customs and Excise.

Fuad said total tax receipts for fiscal year 1997/1998 were net revenues and that they did not include Rp 4.6 trillion in tax refunds already paid to exporters under a rebate and duty drawback scheme implemented during the fiscal year.

Fuad said yesterday the government would continue to vigorously collect taxes, especially from firms making large profits such as money changers and commercial banks with high foreign exchange activities.

"We will see to it that these taxpayers comply with existing tax regulations," he said.

Analysts have predicted a sharp decrease in tax receipts for the current 1998/1999 fiscal year due to a large number of businesses either having to close down or suffering big losses.

The 1998/1999 state budget, starting today, envisages tax receipts from non-oil sectors to total Rp 66 trillion, up 17 percent from last year's target.

Attorney General Soedjono warned that his office would take stern measures against tax evaders.

"We will crack down on any taxpayers trying to manipulate their tax returns," he said. (aly)