Tax authority applies initial strategies

September 19, 2016, 04.30 PM  | Reporter: Asep Munazat Zatnika
Tax authority applies initial strategies


JAKARTA. Government has decided not to reduce the amount of tax revenues target and to maintain the tax revenues shortfalls to not exceed IDR 219 trillion.

Until now, tax amnesty revenues are much lower than expected target of revenues that amounted to IDR165 trillion.

Based on collected Asset Declaration Letter, tax authority has just booked IDR16.8 trillion of redemption fees. Meanwhile, based on collected Tax Payment Slip, tax authority just has recorded IDR 25.8 trillion of redemption fees.

In order to cover the tax revenues shortfalls, government is preparing some strategies, include by widening deficit in 2016 Revised State Budget (RAPBN 2016) to the level of 2.7% of Gross Domestic Product (GDP).

Aside of widening deficit, government will reinforce taxpayers obedience. According to Director of Counseling, Services, and Public Relations at Directorate General of Taxation Hestu Yoga Saksama, tax authority will intensify the application of geo tagging technology in identifying taxpayers.

Head of Macroeconomics Policy at Ministry of Finance Luky Alfirman said that recently government focuses on pursuing regular tax revenues and does not rely on tax amnesty revenues. However, he stressed that government is not being pessimistic, and has not yet revised down the revenues target.

In order to meet the target of regular tax revenues, Directorate General of Taxation will intensify the application of electronic based tax reporting and payment systems.

Aside of increasing tax revenues, government will also pursue the target of revenues from customs and non-taxation state revenues (PNBP).

However, economist at Bank Permata Josua Pardede warned government to maintain deficit of State Budget to not exceed 2.7% of Gross Domestic Products (GDP). Josua assumed that if regionals experience 0.3% of deficit of GDP, the total deficit of State Budget may exceed 3% of GDP.

Josua also expected that government may cover the tax amnesty revenue shortfalls, since the realization of regular tax revenues is still below than expectation. As of the end of August 2016, tax authority has just collected 47% of targeted regular tax revenues.

Economist at Kenta Institute Eric Sugandi added that government is trying to maintain market’s confidence by announcing the level of 2.7% of deficit. It is expected that the announcement will encourage market to be more anticipative of the deficit rise at the end of the year. Conversely, the announcement is expected tp strengthen market’s confidence if deficit at the end of the year is below than 2.7% of GDP. (Translator: Muhammad Farid)

Editor: Sanny Cicilia
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