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Indonesia: Tax DG: Tax Revenue Slows Down
TEMPO.CO, Jakarta – The Finance Ministry’s Tax Directorate General reported a slowdown of tax revenue in 2016 compared to 2015.
“Currently, the growth [of the tax revenue] is slowing down. The revenue had missed the target,” Tax DG’s director of tax compliance and revenue Yon Arsal said at his office in Jakarta on Tuesday, January 17, 2017.
According to Arsal, last year’s tax revenue stood at Rp 1,104 trillion (US$83 billion), which was lower than the target set in the Revised 2016 State Budget at Rp 1,355 trillion (US$101.8 billion). The figure slightly grew by 4.15 percent when compared to the 2015 tax revenue at Rp 1,060 trillion (US$79.7 billion).
Arsal explained that the tax revenue only grew by 7.86 percent when compared to the number recorded in 2014.
“Therefore, the growth rate is slowing down each year,” Arsal added.
Arsal said that the Tax DG, along with the Finance Ministry, is striving to optimize tax revenue through the tax amnesty program. The retribution fee in the third period of the program was set at five percent.
As the second period of the tax amnesty program ended in December 2016, the government recorded repatriated funds amounted to Rp 141 trillion (US$10.6 billion). The total amount of declared assets parked overseas was Rp 1,013 trillion (US$74.1 billion), and that of declared assets parked domestically was Rp 3,143 trillion (US$236.3 billion). In total, the government had received 638,023 declaration letters with a total amount of declared assets of Rp 4,295.8 trillion (US$322.9 billion).
However, the repatriated funds collected in the first and second periods of the tax amnesty program was still far below the target set at Rp 1,000 trillion (US$75.1 billion).
Source: https://en.tempo.co/read/news/2017/01/17/056836892/Tax-DG-Tax-Revenue-Slows-Down