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Govt sets realistic tax target in revised 2016 state budget
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A bank clerk readies bundles of rupiah to pay out to customers. (TEMPO/*)
T
he government has set a more realistic tax revenue target of Rp 1.34 quadrillion (US$101 billion) in the revised draft of the 2016 state budget, a top official has said. It is 13 percent lower than the initial target of Rp 1.54 quadrillion.
According to tax office spokesman Hestu Yoga Saksama, the planned tax amnesty is expected to contribute Rp 165 trillion of the target. Without it, the tax office estimates the figure to reach only Rp 1.17 quadrillion, a 13 percent increase from 2015 tax revenue, which was Rp 1.060 quadrillion.
"Assuming that our economy grows 5.1 to 5.2 percent, and with an extra effort to boost tax revenue, we expect tax revenue to grow 12.5 to 13 percent," Yoga said in Jakarta on Friday.
The tax amnesty bill, currently being deliberated at the House of Representatives, is expected to bring home billions of dollars that Indonesians have parked overseas.
The owners of the repatriated assets will be charged between 1 and 4 percent of the amount in exchange for being pardoned for past tax noncompliance.
The government expects Rp 165 trillion to come from the tax amnesty program. However, Bank Indonesia predicts that the program will yield only Rp 53.4 trillion in additional tax revenue. (ags)
