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Sri Mulyani proposes more optimistic tax revenue target
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Finance Minister Sri Mulyani Indrawati (right) and Bank Indonesia Governor Agus Martowardojo attend a hearing with the House of Representatives budget committee in Jakarta on July 5. (Antara/M Agung Rajasa)
F
inance Minister Sri Mulyani Indrawati has asked the Directorate General of Taxation to increase tax revenues by Rp 20 trillion (US$1.49 billion) from what was stipulated in the draft 2017 State Budget Revision.
Previously, Coordinating Economic Minister Darmin Nasution announced that in the draft of the revised budget, the government had cut the tax revenue target by about Rp 50 trillion to Rp 1.45 quadrillion (US$108.35 billion) from nearly Rp 1.5 quadrillion.
If Sri Mulyani’s proposal is approved by the House of Representatives, the cut will only be Rp 30 trillion from the original target listed in the 2017 State Budget.
Sri Mulyani has expressed optimism that her target can be achieved.
Read also: Government to revise down tax revenue target“[The target can be achieved] with extra effort in collection, investigation and gijzeling (the use of incarceration to punish tax evasion),” said Sri Mulyani as reported by tempo.co.
Previously, Darmin said the Rp 50 trillion cut was designed to make the state budget more realistic.
“Imagine if we do not cut the target by Rp 50 trillion. Investors can calculate [that we will miss the target]. The impact will be worse if we do not make a correction,” said Darmin.
Sri Mulyani claims that despite missing the target, tax revenue collection in the first half of the year has been fairly good. Collection grew 9.6 percent compared to the figure recorded in the same period last year. (bbn)
