This year, the tax revenue target was set at Rp1,294.2 trillion, but realization reached only Rp531.1 trillion or 41.04 percent until July.Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro described as realistic target set for tax revenues in 2016 saying it was calculated on natural growth.
"Countries which have good fiscal management, depend much on tax revenues. Previously we depended much on oil and gas revenues. Now with the oil price shrinking, we rely more on taxes," the minister said here on Wednesday.
The government has set higher target for tax revenue at Rp1,565.8 trillion in 2016 or a 5.1 percent increase from this years target.
This year, the tax revenue target was set at Rp1,294.2 trillion, but realization reached only Rp531.1 trillion or 41.04 percent until July.
Bambang Brodjonegoro denied suggestion that the countrys tax revenue target for 2016 was not realistic, saying the target is realistic as it was set based on estimate of natural growth.
"The tax revenue target for 2016 has been set not on realization in 2015, but on estimate of shortage in revenue . From the shortage we make a realistic estimate," he said.
The minister said dependence on tax for revenue indicates that the country has good fiscal condition.
He said the finance ministry would reform the taxation system that would minimize leaks to increase tax revenues .
He acknowledged "there are still many leaks."
The government will also improve services to improve tax payers obedience , he said, adding improvements in services related to regulation, administration and accountability.(*)
Editor: Heru Purwanto
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