Tax revenue targets for 2003 lowered

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.