The Finance Ministry's directorate general of taxation Friday announced a 47.63 percent jump in tax revenue during the first five months of the year to Rp 217.30 trillion (US$23.22 billion) on the back of higher proceeds from natural resources.

"Between January and May there was a 60 percent increase in tax revenue from the oil and gas sector to Rp 27.8 trillion. This lifted our overall tax income during the period," said director general of taxation Darmin Nasution as quoted by Antara.

Tax earnings from the oil and gas sectors were actually 13 percent higher than estimated, he added.

Tax revenue from the non-oil and gas sector rose 44 percent to Rp 189.40 trillion during the 2008 January-May period from Rp 130.50 trillion from in the same period last year.

"The significant increase in earnings from property tax, income tax, luxury tax and payment receipts of building and property taxes contributed to the increase in the sector," Darmin said, adding that activities in the mining and agricultural sector had fueled higher tax revenues in the non-oil and gas sector.

Indonesia, Southeast Asia's largest economy, has been relying heavily on the natural resources sector to help fuel its economy as manufacturing output is expected to grow sluggishly amid higher production costs and weaker domestic consumption.

Darmin said he was upbeat the jump in tax revenue would further increase after July as economic activities intensified.

The government estimates a tax revenue of Rp 523.85 trillion in this year's state budget, up 26.60 percent from Rp 426.23 trillion last year.

Since the Asian financial crisis in late 1997, Indonesia has relied heavily on taxes to fill the state coffers. At present, around 60 percent of the state's income is derived from taxes.

However, the tax directorate has estimated that less than 3.5 million individuals and institutions pay taxes. (rff)

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