Minister: Income Relying On Tax Show Good Fiscal Condition

TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro said state income that depend on tax revenue is a sign of good fiscal condition, responding to how most revenue in 2016 is targeted from taxes.

"Countries with good fiscal management depends on tax revenues. Previously we rely on oil and gas, now we switch to tax. Moreover, increasing oil and gas production is falling,” the minister said on Wednesday, August 19.

Bambang said that the tax revenue target in the Draft State Budget Revenue and Expenditure (RAPBN) 2016 is realistic because it was compiled based on estimates of natural growth.

"The 2016 tax revenue target is realistic and not based on 2015 tax revenues, but estimates of a shortage revenue. From that shortage (revenue), we calculate a relatively realistic growth," he said.

To encourage tax revenue, the minister said he would carry out tax reform to seal leaks that are still happening.

Bambang added, in addition, the government will improve services, so that taxpayer compliance will be increased, through an improvement in terms of regulation, administration and accountability.

The government has set a tax revenue target of Rp1.565,8 trillion, a rise of as much as 5.1 percent in the Draft RAPBN 2016.

Meanwhile, tax revenues by the end of July 2015 has reached Rp531,1 trillion or 41.04 percent from the revised 2015 State Budget of Rp1.294,2 trillion.

ANTARA