Indonesia: Tax office optimistic about meeting IDR1.28qr revenue target

  • The tax office has expressed its optimism that it will meet its target of IDR1.28qr (USD95.19bn) in tax revenues by the end of 2017, although it had only achieved 60% of the target by Sep 17, reported
  • Tax revenue and compliance director Yon Arsal of the Directorate General of Taxation said over the weekend that it had collected IDR770.7tr in taxes as of Sep 17, which was 12.6% higher y/y.
  • “Value-added taxes (PPN) from imported goods grew between 18% – 20%. It means that the industry has started growing. Meanwhile, PPN from domestic goods also grew 18%,” Yon said was quoted as saying.
  • He also recorded that the income tax collection had also started to grow by 4%, although it grew negatively to mid-Jun 17. “This is good, because [income tax contributes] about 8% – 9% to the total revenue,” he added.
  • Yon said land and property taxes from the oil and gas sector would contribute significantly to revenues in the coming months.
  • The tax collection will also be driven by a follow-up to 2016’s tax amnesty and also taxes from government spending, Yon said.
  • Center of Indonesian Tax Analysis (CITA) executive director Yustinus Prastowo has estimated the government would only collect IDR1.14qr by the end of 2018.

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