Jakarta (ANTARA News) - The government is considering evaluating the limit of taxable income to optimize tax receipts as a funding source of the state budget as well as to ensure the principle of justice.

"We will continue to put the tax issue in order. Whoever have taxable income must pay tax. Whoever tax officers have adequate salaries must not stash state money," President Susilo Bambang Yudhoyono said before the workers of PT Industri Keramik Kemenangan Jaya in Gunung Putri sub-district, Bogor district, West Java, on Sunday.

"I have asked the manpower and transmigration minister to work closely with the finance minister, the director general of taxes and other relevant ministers to see what is the fair amount must be taxed so they can decide how much income must be taxed and how much income must not be taxed," he said.

The President expressed hope the next tax policies would match the target and therefore, low-income people would not necessarily pay taxes.

"So only certain income or "x" will be taxed and the amount of taxed income will also be reasonable. I ask the manpower and transmigration minister to coordinate with the finance minister to see the matter completely," he said.

The President said the state needed taxes to finance development activities including improving its people`s living standard.

"Any country elsewhere in the world needs taxes. Almost 80 percent of all activities carried out in this country is financed with taxes. Without taxes the country will not survive. After all, not all things must be taxed," he said.

The President visited the company as part of his activity to observe Labor Day or May Day. (*)

Editor: Kunto Wibisono
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