The government claims that tax revenue as of early December this year is better than last year. “The position is far better,” said Yon Arsal, Director for Tax Potential, Compliance and Revenue of the Directorate General of Taxes, in Bogor yesterday. He, however, did not specify the exact figure.
Nevertheless, Yon said that this year’s tax revenue has not reached the target. As of November, the tax revenue realization stood at Rp1,148.7 trillion or 78 percent of the target set in the revised 2017 state budget of Rp1,472.7 trillion.
Yon said that the shortfall is smaller than that of December 2016 that was boosted by the tax amnesty program. The shortfall stood at Rp400 trillion of the tax revenue full-year target of Rp1,355 trillion.
Yon said that this year’s tax revenue is boosted by all types of taxes. Domestic value-added tax grows steadily at 15 percent and individual income tax grows 44 percent. Meanwhile, legal entity income tax grows 17 percent and Article 21 income tax grows 6 percent.
Sectoral taxes have also posted better growth this year. The mining sector and mining supporting services grow 30 percent, boosted by Articles 25 and 29 income taxes that reach 70 percent. “Thanks to increasing commodity prices,” he said.
In addition, the processing sector grows 17 percent, whereas the trade sector grows 18 percent.
As for next year, Yon is confident that the tax revenue target will be achieved considering that the figure is only 10 percent more than this year’s target. He said that the figure is in line with the projected 5 percent economic growth and 3 percent inflation.