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Tax Authority targets mining and property sectors

October 28, 2016, 05.58 PM  | Reporter: Adinda Ade Mustami
Tax Authority targets mining and property sectors


JAKARTA. Tax authority started pursuing taxation revenues from the sectors of property and mining, mainly mineral and coal industries. Tax authority sees the increase in taxation revenues from the sector of non-oil and gas.

As of Thursday (27/10), the realization of non-oil and gas taxation just amounted to Rp 825.26 trillion, or only 62.5% of the Rp 1,318.9 trillion of target set under 2016 Revised State Budget.

Government expects that the tax revenues of non-oil and gas sector will just amount to Rp 1,105.8 trillion by the end of 2016. In other words, Indonesia will have an Rp 213.1 trillion of shortfalls in tax revenues by the end of this year.

In order to achieve the minimum target of the tax revenues, tax authority has to obtain Rp 280.54 trillion. Minister of Finance Sri Mulyani said that mineral and coal sectors have excessive potentials of tax revenues. However, those sectors still have less contribution to the total amount of tax revenues.

Minister Sri Mulyani on Wednesday (25/10) night held a meeting with 200 businessmen of oil, gas, mineral, and coal sectors. During the meeting, the businessmen admitted the low tax payment due to the sluggish business following the decrease in the global price. However, Minister Sri Mulyani claimed that the businessmen had less compliance with tax obligations when the prices of commodities were high five years ago.

Directorate General of Taxation recorded a decrease in the number of taxpayers of mineral and coal sectors that filed annual tax letters during 2011-2015. The number of taxpayers, which filed their annual tax letters dropped from 3,037 in 2015 to 2,577 in 2015. In other words, the number of taxpayers in the sectors that fail to report their annual tax letters increased from 2,964 taxpayers in 2011 to 3,624 taxpayers in 2015.

Director General of Taxation Ken Dwijugiasteadi added that the contribution of sectors of mineral and coal to the total of tax revenues are also still low.

Only 967 taxpayers out of 6,100 taxpayers of mineral and coal sectors participated in tax amnesty program with the total redemption fees amounted to Rp 221.7 billion. Most of the taxpayers, 378 taxpayers, are from Kalimantan with an Rp 144.1 billion redemption fees.

Nusa Tenggara, Maluku, and Papua regions only have 80 participants or the lowest participants of tax amnesty with the redemption fees amounted to Rp 2.8 billion. “We will conduct auditing (of the taxpayers),” Ken said. The tax authority will also intensify law enforcement through investigations.

Aside of mineral and coal sectors, Directorate General of Taxation will also pursue taxpayers from property sector. Government is scheduled to conduct a meeting with property entrepreneurs. According to Sri, the government will conduct massive intensification and extension to all potential sectors in order to achieve the target of tax revenues. (Translator: Muhammad Farid)

Editor: Sanny Cicilia
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