TEMPO.CO, Jakarta - After the last Rp133 trillion budget cut, the government may make another cut in the state budget. Vice President Jusuf Kalla said there is a possibility for the state budget to be trimmed for the third time.
This decision will depend on the revenue received from the tax amnesty program.
"Because if the revenue target is included in the State Budget, so the risk is to have another budget cut," Kalla said in Jakarta Friday, September 2, 2016.
The tax amnesty program kicked-off in July with a revenue target of Rp165 trillion. So far, the amount of revenues that has only reached Rp3.88 trillion, just 2.4 percent of the revenue target.
According to Kalla, the tax amnesty proceeds in September will be used as a benchmark for whether another budget cut is necessary. If the proceeds remain below expectation, there is a greater possibility for a third cut.
To boost tax amnesty proceeds, Kalla said the government has requested the assistance of the Indonesian Employers Association (Apindo) to gather entrepreneurs or large taxpayers. He said that Apindo chairman Sofjan Wanandi has met with top-class businessmen and asked them to join the tax amnesty program this month.
"Sofjan gathered hundreds of major business players two or three days ago. And they promised to join the tax amnesty. There is still time, we will see," said Kalla.
ISTMAN M.P.
