TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Taxmen suffer pay cut after 2015 failure
Sanctioned: The Finance Ministryâs directorate general of taxation is set to slash employeesâ pay across the board after it failed to meet tax-revenue targets in 2015
Change Size
Sanctioned: The Finance Ministryâs directorate general of taxation is set to slash employeesâ pay across the board after it failed to meet tax-revenue targets in 2015. (Kompas.com/Carolus Agus Waluyo) (Kompas.com/Carolus Agus Waluyo)
S
span class="inline inline-center">Sanctioned: The Finance Ministry's directorate general of taxation is set to slash employees' pay across the board after it failed to meet tax-revenue targets in 2015. (Kompas.com/Carolus Agus Waluyo)
The government is set to cut the remuneration of employees at the Finance Ministry's directorate general of taxation in light of a poor performance in 2015, a senior official has said.
'We are ready to cut the remuneration [of tax officials] in accordance with the existing presidential regulation [...],' the ministry's director general for budgeting, Askolani, said as quoted by kompas.com on Sunday.
It is expected that the 2015 full-year tax revenue failed to meet the government's target of Rp 1.29 quadrillion (US$93.55 billion), as stipulated in the revised 2015 state budget
'It is predicted that tax revenue [last] year will reach only Rp 1.09 quadrillion, or 84.9 percent of the target,' said the tax office in a recent statement.
As a consequence, the statement said, the monthly remuneration of tax officers would be cut in 2016. As set out in existing regulations, as 84 percent of last year's tax target was met, officials' pay would be cut to 80 percent of last year's levels.
According to the ministry, the largest salary, paid to the director general of taxation, will be Rp 93.9 million in 2016, down from Rp 117.37 million in 2015.
Meanwhile, the lowest remuneration in 2016 will be Rp 4.29 million per month.
According to Presidential Regulation (Perpres) No.37/2015 on remuneration for employees at the directorate general of taxation, the highest remuneration, awarded to the director general, reaches Rp 117.37 million per month. Meanwhile, the lowest remuneration is Rp 5.36 million for implementation officials.
The perpres stipulated that in 2015, tax officials were to receive the amounts stipulated, but that in following years, remuneration was to be determined by the previous year's performance.
If tax revenue achieved stands at more than 95 percent of the target, officials receive full remuneration; the amount is then graded according to percentage of the target attained, and a 50 percent cut is the most severe reduction stipulated.
Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said President Joko 'Jokowi' Widodo should revise the regulation, however, as pay cuts would serve only to demotivate tax officials. (ebf)
