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Jakarta Post

Bumpy road to achieving higher tax ratio

Bumpy road to achieving higher tax ratio The Directorate General of Taxation (DGT) has released its latest report for 2017 fiscal year, showing a meager 4-percent growth in tax collection over the previous year. (Shutterstock/File)
Glenn Polii (The Jakarta Post)
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Jakarta   ●   Tue, January 30, 2018

The Directorate General of Taxation (DGT) has released its latest report for 2017 fiscal year, showing a meager 4-percent growth in tax collection over the previous year. If the tax amnesty program, which pertains to pre-2016 taxes and other nonrecurring revenues, were excluded, the growth figure shoots to 16 percent.

Considering that the nominal growth of the economy in 2017 was only around 9 percent, the normalized revenue growth rate is not too bad.

However, what really matters for the development effort is not the growth in revenue but the level of collection, and on this count the revenue performance was surely not a cause for a celebration.

The revenue mobilization effort, spearheaded by the DGT, could only collect Rp 1.15 quadrillion (US$85 billion), or ...

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Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.