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Tax shortfall in 2015 worst in a decade
Despite failure to meet the tax revenue target set out in the state budget, Finance Minister Bambang Brodjonegoro has announced that the tax office in 2015 had collected more non-oil and gas tax revenues than ever before
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Despite failure to meet the tax revenue target set out in the state budget, Finance Minister Bambang Brodjonegoro has announced that the tax office in 2015 had collected more non-oil and gas tax revenues than ever before. (Kompas/Iwan Setiawan) (Kompas/Iwan Setiawan)
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span class="caption">Despite failure to meet the tax revenue target set out in the state budget, Finance Minister Bambang Brodjonegoro has announced that the tax office in 2015 had collected more non-oil and gas tax revenues than ever before. (Kompas/Iwan Setiawan)
While tax revenues reached an all-time record of Rp 1.06 quadrillion (US$76.1 billion) in 2015, they fell 18 percent or Rp 234 trillion short of the target of Rp 1.29 quadrillion set by the government and lawmakers in the state budget, marking the worst shortfall in a decade.
Based on budget reports that thejakartapost.com collected, 18 percent is the biggest shortfall in 2005-2015 taxation period. The second-biggest was a shortfall of 9 percent in 2014. 2008 was the only year when the tax office recorded a surplus in tax revenue over the targeted amount.
Last year's tax revenue comprised of non-oil and gas tax income of Rp 1.01 quadrillion and oil-gas tax revenue of Rp 49.7 trillion, Finance Minister Bambang Brodjonegoro explained in Jakarta, as reported by kompas.com.
In 2015, the ministry recorded a 12.05 percent increase in non-oil and gas revenue, which compares to revenue growth of 7.8 percent in 2014.
Despite failure to meet the tax revenue target set out in the state budget, Bambang stressed that the tax office in 2015 had collected more non-oil and gas tax revenues than ever before.
"Amid the economic slowdown [...] it managed to grow. Non-oil and gas tax revenue of Rp 1,011 trillion is a new record in Indonesian history," he said, noting that this reflected the tax office's performance, as it was purely collected by tax officials.
Meanwhile, oil and gas tax revenue slumped by 43.1 percent to Rp 49.7 trillion in 2015, from Rp 87.5 trillion in 2014. According to Bambang, the fall in crude oil prices and low crude oil production in the country are to blame.
In the 2016 state budget, the total tax revenue target has been set at Rp 1.36 quadrillion, comprising non-oil and gas tax income of Rp 1.32 quadrillion, and oil-gas tax income of Rp 41.4 trillion.
University of Indonesia taxation expert Darussalam urged the government to revise down the 2016 revenue target to a 'more realistic' level.
The 2015 tax shortfall prompted then-head of the Tax Office, Sigit Priadi Pramudito, to step down from his position on Dec. 1. (ami/ags)(+)
