Tax to be optimized without disrupting investment climate

Jokowi affirmed that tax policies would be directed to increase national economic stability to preserve the public`s buying power and to increase competitiveness and added value of national industries.
Jakarta (ANTARA News) - The Indonesian government, with its plan to not disrupt the investment climate, will optimize tax income set at Rp1,565.8 trillion in the draft budget for 2016 presented to the House of Representatives here on Friday.

"Tax receipts are expected to reach Rp1,565.8 trillion to enable its ratio to the gross domestic product to reach 13.25 percent," President Joko Widodo noted in a speech while presenting the draft budget for 2016 to the House of Representatives.

He affirmed that tax policies would be directed to increase national economic stability to preserve the publics buying power and to increase competitiveness and added value of national industries.

On the other hand, the government will also optimize non-tax state income, which in 2016, is set at Rp280.3 trillion.

Revenues from natural resources, especially oil and gas, will dominate the non-tax income although numerous challenges, such as the volatile global oil prices still loom large.

The government has set state revenues in the draft 2016 state budget at Rp1,848.1 trillion while state spending at Rp2,121.3 trillion.

Economic growth is assumed at 5.5 percent in the draft 2016 budget while inflation at 4.7 percent and the rate of three-month state securities at 5.5 percent.

The oil price is assumed at US$60 per barrel while oil/gas production at 1.98 million barrels per day comprising oil lifting at 830 thousand barrels a day and gas production at 1.55 million barrels a day. (*)

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