"Hopefully, it can be completed in the next session, so we still have six months," he said here Friday.
Now that the deliberation of the tax amnesty bill is put on hold, government spending in the revised 2016 state budget must be adjusted.
"The revised state budget will be adjusted to the current condition. Therefore, the estimate of tax receipts may decline and that the government spending must be adjusted," he said.
The planned tax amnesty is the main reason behind the governments step to propose the revised state budget, Finance Minister Bambang Brodjonegoro said earlier. As a result, the revision of tax receipts will depend heavily on the governments success to implement the policy, he added.
The revision of tax receipt target which has been set at Rp1,360.1 trillion in the state budget will likely result from a change in the assumed Indonesian Crude Price (ICP) and low commodity prices.
If the tax amnesty is not fully successful, state revenues from the oil and gas sector will be disrupted. Therefore, the government is also preparing a pessimistic scenario in the revision of the state budget by slashing expenditure.(*)