Tax revenues up by 112 percent

Tax revenues up by 112 percent

The Jakarta Post, Jakarta

Director General of Taxation Hadi Purnomo said over the
weekend that, as of October, state revenue from taxes had
increased by 112 percent to Rp 155.7 trillion (US$132 billion)
from the same period last year, on improved tax compliance.

Hadi said the revenues accounted for 74 percent of the
country's tax target this year of Rp 210 trillion, but excluding
those from excise, import duties and export taxes, which were
projected to reach a total of Rp 37.6 trillion.

"We are optimistic that the tax target this year can be met,
although we have only two months to collect the remainder," he
said.

He explained that of total revenues, Rp 73.4 trillion was
derived from non-oil and gas income tax, Rp 15.9 trillion from
oil and gas income tax, Rp 56.2 trillion from value-added and
luxury taxes, Rp 8.8 trillion from land and property tax and Rp
1.4 trillion from other taxes.

By the end of this year, around 49.1 percent of the tax
revenue target is expected to come from income tax, 31.8 percent
from value-added and luxury taxes, with the remainder from other
taxes.

To meet the target, the Directorate General of Taxation would
focus more on raising tax compliance to 40 percent this year from
30 percent last year, said Hadi.

Tax revenue this year is expected to become the backbone of
state revenue, contributing around 75 percent.

In the past few years, the government has relied more on tax
revenues to support the country's fiscal consolidation process
(reducing the budget deficit and debt levels) because of the very
limited scope for cutting expenditure in other areas.