Sri Mulyani Admits Tax Amnesty Target Difficult to Achieve

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati admitted that it is difficult to achieve the revenue target from the tax amnesty program. She said there is a deficit potential of Rp219 trillion in the 2016 Revised State Budget, which could come from the tax amnesty post.

"This potential is calculated with an assumption that the tax amnesty program works well," she said at the parliament complex yesterday, August 25, 2016.

According to Sri, there is also the public doubt on whether the program will be a success, especially regarding the capability of tax officers.

This is reflected from the public's lack of enthusiasm for the program, as seen in the low amount of tax retribution, which has only reached Rp1.18 trillion of the targeted Rp165 trillion.

Sri is also predicting that the level of consumption may be disturbed by the program.

Despite her fears, Sri is not giving up on the program. "The stat's low tax ratio of just 11% is unacceptable and must be fixed immediately through this program," she asserted. 

The House of Representatives' (DPR) Finance and Banking Committee member Hendrawan Soepratikno said the program's targets and impacts have been "too bombastic" since the beginning. Hendrawan and the Indonesian Democratic Party of Struggle (PDI-P) have frequently complained about the public confusion regarding this program to Sri and President Joko Widodo.  

NasDem politician Jhonny Plate shares Hendrawan's sentiments. He said many people, especially from the lower-middle class, have complained about not getting a clear answer when asking about the program to tax officers. "They are actually afraid," he said. For that reason, he has not joined the program.

Tax Director General Ken Dwijugeasteadi dismissed the doubts, saying that Sri Mulyani as Finance Minister continues to monitor the program to achieve the targets. "That's why I remain optimistic although I am a little nervous," he told Tempo yesterday.

Ken said proceeds from the tax amnesty program continue to increase. As of Thursday, August 25, the Tax DG has received Rp260 billion tax amnesty retribution. He guaranteed that by mid-September there will be plenty of high-rolling taxpayers joining the program.

ANDI IBNU