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Indonesia: Tax Revenue Expected to Grow 16.8 Percent: Finance Minister
TEMPO.CO, Jakarta – The Minister of Finance Sri Mulyani is targeting 16.8 percent growth in tax revenue from last year. The government has formed the Tax Reform Team to achieve it. The team is tasked with establishing a stronger basis of human capital, information technology and business process. “As well as the laws and regulations,” Minister Sri Mulyani said yesterday.
According to the former World Bank director, among the challenges faced by the government this year is to increase tax revenue. However, Sri is optimistic that the growth of manufacture and trade sectors this year will become the major drivers of improved tax revenue.
Moreover, service sector will also contribute to tax revenue from financial sector. “The contribution of agriculture, mining and fishery [sectors] is still low. The contribution of property and construction is a long way off to tax [revenue],” Sri added.
In the 2017 state budget (APBN), the government is targeting Rp1,498.87 trillion in tax revenue.
The government will mainly focus on maintaining and building on the tax base this year. “We will study the data and identify the individuals, subjects and objects of tax. In order to expand the tax base,” Sri said.
Source: https://en.tempo.co/read/news/2017/02/09/056844582/Tax-Revenue-Expected-to-Grow-168-Percent-Finance-Minister