Indonesia tax revenues slips 13% in Q1 2016

2

Photo Pajak

JAKARTA (TheInsiderStories) – Indonesia’s tax revenue slips up to 13 percent in first quarter (Q1) of 2016 to Rp197.9 trillion (US$ 14.97 billion) compared to same period of last year Rp227.5 trillion as value added tax remains low, said Finance Minister Bambang Brodjonegoro.

Government targeting to raises tax revenues Rp1,360.2 trillion in State Budget of 2016 or 28 percent higher than 2015’s tax revenue realization of Rp 1,060.85 trillion. The targets more than 70 percent of the Rp 1,822.54 trillion state revenue target this year.

“It was mainly due to lower tax refund on the back of tax restitution and low consumption in the period,” He said.

Indonesia currently use all their effort to reach the tax revenues target like grant tax amnesty to defaulted taxpayers by offering discounted tax rates to taxpayers who declare their income without limitation on the unpaid tax owed to the government.

The government only give one time tax amnesty to the unregistered taxpayers in 2016.

Based on government data, the government could collect around $100 billion ($7.19) in additional tax revenues by offering tax amnesty to taxpayers in Indonesia and abroad.

Currently, the tax amnesty draft law is being deliberated by the Parliament. The law will become legal basis for the government in granting tax amnesty to the defaulted taxpayers.

The unregistered taxpayers also have the possibility to get incentives if they bring their money back to Indonesia from abroad and placing or invest the money in the government bonds, infrastructure projects and other investments.

There are just 27 million registered taxpayers in the country out of a population of 255 million, with 10 million of them paying income tax in full amount every year, according to Finance Minister Bambang Brodjonegoro.

 

Ken Dwijugiasteadi, the director general of the Finance Ministry’s tax office added beside, tax amnesty his office will try to extended the individual taxpayers number, repratiation and improve the information technology system.

The post Indonesia tax revenues slips 13% in Q1 2016 appeared first on The Insider Stories.

Source: The Insiderstories
Indonesia tax revenues slips 13% in Q1 2016

You might also like More from author

Comments are closed, but trackbacks and pingbacks are open.