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Sri Mulyani sees up to Rp 130 T tax shortfall

Rabu, 20 Desember 2017 / 17:03 WIB

Sri Mulyani sees up to Rp 130 T tax shortfall



KONTAN.CO.ID - JAKARTA. Indonesia's finance minister on Wednesday said she expects tax revenue to miss the government's target by 110 trillion to 130 trillion rupiah ($9.57 billion) this year, but maintained her outlook for the size of the fiscal deficit.

"Although there would be a tax shortfall, spending also would not reach the full target that has been budgeted," Sri Mulyani Indrawati told reporters, without explaining the reason for the shortfall.

Indonesia had originally targeted tax revenue of 1,472.7 trillion rupiah for the year, according to its revised state budget released in July. In the Dec. 15 year-to-date period, the government has collected 1,211.5 trillion in tax revenue.

Still, Indrawati maintained her outlook for the size of the fiscal deficit to be around 2.6-2.7 percent of GDP for 2017.

The minister has frequently said the government will continue slashing unnecessary spending to keep a tighter rein on its finances.

She also said better-than-assumed oil prices this year have helped the government's non-tax revenue exceed its target of 260.2 trillion rupiah due to revenue from the oil and gas sector. By mid-December, the government has recorded 281 trillion in non-tax revenue.

The government has an official target for its budget deficit to be 2.92 percent of GDP this year, below Indonesia's 3 percent legal limit.

It launched a tax amnesty program last year to broaden the taxpayer base, and nearly $360 billion of assets were declared before it ended in March this year. The programme added 107 trillion rupiah to its 2016 revenue.

Sumber : Reuters
Editor: Barratut Taqiyyah Rafie

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