Govt expects tax revenue to reach Rp1,000 trillion in 2013

Monday, 22 February 2010

The Jakarta Globe 

Jakarta (ANTARA News) - The director general of taxation, M Tjiptardjo, said the government expected the tax revenue to reach Rp1,000 trillion in 2013.

"The target is based on the assumption of tax collection growth of 19.7 percent a year," he said in a discussion on the 2010 national budget at the finance ministry building here on Monday.

He said macro-economic assumptions for the projection were 6.4 percent economic growth in the next four years from 2010 to 2013 and an average inflation rate of 5.3 percent.

He said average growth of normal collection by the office for the next four years meanwhile was set at 12 percent while average extra efforts needed to help meet the target was boosting growth by 7.7 percent.

He said the target of tax collection in 2010 was set at Rp611.22 trillion while in 2011 at Rp724.63 trillion, in 2010 at Rp871.93 trillion and in 2013 at Rp1.0586.23 trillion.
Tjiptardjo said with the assumed hike in tax revenue the tax ratio (the ratio of revenue to the GDP) was expected to also rise by 15 percent.

"The tax ratio right now is still low and must rise by 15 percent," he said.

He said right now the tax ratio was recorded at only 12.1 percent but in 2013 with the tax revenue expected to reach more than Rp1,000 trillion the tax ratio is predicted to still reach 12.5 percent and therefore the target of a 15 percent tax ratio is still too high.

Tjiptardjo said to meet the target in tax revenue the directorate general of taxation had prepared four strategies namely continuing bureaucratic reform in his office, extending incentives to certain business groups or sectors and continuing the program of mapping, profiling of tax payers, benchmarking and law enforcement.

"Regarding bureaucratic reform we will be focussing on improvement of information technology and human resources development," he said.

He said the IT improvement efforts covered infrastructure, data quality and data quality improvement while human resources development efforts comprised system and human resources development management, capacity improvement of human resources and implementation of good governance.