Tax revenue targets for 2003 lowered

The Jakarta Post, Jakarta

The government has lowered next year's tax revenue targets by Rp 7 trillion (about US$760 million) to Rp 212.2 trillion, citing a more difficult economic condition after the Oct. 12, Bali bombing.

Director General for Taxation Hadi Purnomo said on Tuesday the new tax targets excluded revenues from excise and import duties.

The government and the House of Representatives' budget committee have been meeting for the past week to discuss revisions to targets and assumptions under the 2003 state budget.

During Tuesday's meeting the government kept its excise target unchanged at Rp 27.6 trillion but lowered import duties to Rp 11.5 trillion from Rp 13.8 trillion.

The adjustment of the revenue targets come in the wake of the Oct. 12 Bali bombing that has forced the government to redraw its 2003 state budget draft.

Hadi explained that leading the fall in tax revenues would likely be income tax, value-added tax (VAT) and luxury tax.

He predicted next year's income tax revenues to come down at Rp 119.8 trillion from Rp 124.7 trillion, and VAT and luxury tax revenues to Rp 82.1 trillion from Rp 79.9 trillion.

Aliy As'ad, deputy chairman of the budget commission who presided over the meeting, said discussion over the new tax targets would continue on Friday.