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Jakarta Post

Jokowi scales back optimism over tax revenues

Ayomi Amindoni (The Jakarta Post)
Jakarta
Tue, March 29, 2016 Published on Mar. 29, 2016 Published on 2016-03-29T15:08:50+07:00

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Lawmakers are pictured inside the House of Representatives. President Joko "Jokowi" Widodo has said that tax revenue target in the 2016 state budget is to be revised, from the previous target of Rp 1.36 quadrillion (US$101 billion) to a more "optimistic and realistic" figure. Lawmakers are pictured inside the House of Representatives. President Joko "Jokowi" Widodo has said that tax revenue target in the 2016 state budget is to be revised, from the previous target of Rp 1.36 quadrillion (US$101 billion) to a more "optimistic and realistic" figure. (Tempo/-)

T

he tax revenue target in the 2016 state budget is to be revised from the previous target of Rp 1.36 quadrillion (US$101 billion) to a more "optimistic and realistic" figure, President Joko "Jokowi" Widodo has said.

The initial tax revenue target has been heavily criticized for being overly ambitious, as it ignores the fact that a proposed tax amnesty bill – which is expected to dramatically boost revenues – has yet to be passed into law.

"We don’t want to be overly optimistic. We have already made a calculation that excludes the tax amnesty. There is no determination yet on a tax amnesty," Jokowi said after a meeting at the directorate general of taxation office in Jakarta on Tuesday.

Finance Minister Bambang Brodjonegoro said the tax office would work toward a revenue target of Rp 1.36 quadrillion, regardless of the tax amnesty bill. "If it is not approved, we will come out with several alternative scenarios that have been prepared to ensure the target is achieved," he said.

Earlier, House of Representatives speaker Ade Komarudin said the deliberations over the tax amnesty bill would be held after the House resumed sitting in April and could be completed in May before the revised 2016 state budget is approved.

The House previously postponed discussion on the tax amnesty bill as some factions said more time was needed to review it. The demand was conveyed during a House Steering Committee meeting on Feb. 25, two days after the government submitted the bill. (ags)

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