Executive Director of the Center for Indonesia Taxation Analysis (CITA) Justin Prastowo said the tax revenue target only increased by 15.39 - 16.68 percent from CITA`s projection over the realization of tax revenue in the 2018 State Budget, namely 94.6-95.6 percent of the target without the need to make a budget revision.
"This target is more realistic. Moreover, the progress of on-going taxation reform has shown positive results with regard to the performance of the Directorate General of Taxation," Yustinus said in an official statement received in Jakarta on Friday.
Besides performance, tax reform has encouraged increased tax compliance after the recent tax amnesty, improved service quality, a more credible and fair examination, utilization of financial information or data from the Automatic Exchange of Information (AEoI) and more measurable and targeted incentives.
In the meantime, Finance Minister Sri Mulyani Indrawati said earlier that the projection of tax receipts in the 2019 Draft State Budget (RAPBN) set at Rp1,781 trillion, or up 15 percent from the 2018 state budget at Rp1,548.5 trillion, was a rather ambitious target.
"It is projected that the total tax revenue will grow by 15 percent. This is good enough, as it is not too unrealistic. It is rather ambitious, yet achievable," she said.
Indrawati said one of the ways to achieve this target was by encouraging supervision of tax compliance through the implementation of automatic exchange of financial information access (AEoI).
In addition, other efforts that need to be carried out are extensification and increased supervision as a follow-up to the implementation of tax amnesty and handling of small and medium scale enterprises through a business development services approach.
"We have considered the tax situation comprehensively by looking at the right combination between the desire to increase the tax ratio within the realistic frame and the economic conditions," Indrawati said.
The tax revenue target of Rp1,781 trillion in the 2019 Draft State Budget consists of non-oil and gas taxes worth Rp1,510 trillion, non-oil and gas income taxes valued at Rp.62.3 trillion and customs and excise duty amounting to Rp.208.7 trillion.
Reporting by Citro Atmoko
Editing by Andi Abdussalam