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Tax Revenue Improved after Tax Amnesty Program

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8 May 2017 06:54 WIB

TEMPO.CO, Jakarta - Director General of Tax of the Finance Ministry Ken Dwijugiasteadi has claimed that tax revenue has improved after the implementation of the tax amnesty program. Data from Directorate General of Tax (Tax DG) as at April 30 show that tax revenue stands at Rp343.7 trillion, an increase of 18.19 percent compared to the same period last year.

Ken said that all data collected during the tax amnesty program enable the Tax DG to collect more revenue. He said that the amount of tax revenue is the highest in the last 10 years. “After tax amnesty, there is no more incorrect tax [data],” Ken said last week.

A total of 4,734.31 trillion in declared assets by the completion of the tax amnesty program has been lauded as the largest amount managed to be collected by a country in history. However, the government failed to meet the target of Rp165 trillion in repatriated assets, collecting only Rp146.69 trillion.

Director for tax potential, compliance and revenue Yon Arsal said that tax revenue growth for January-April 2017 was close to the government’s target of 18.23 percent. A significant amount of tax revenue came from value-added taxes (VAT). Domestic VAT reached Rp68.8 trillion or rose by 16.67 percent compared to last year, whereas import VAT hit Rp44.8 trillion or an increase compared to last year at Rp37.7 trillion. “The VAT [amount] is a positive signal that the economy is running [well],” Yon said.

Arsal claims that tax revenue has increased thanks to the tax amnesty program. It improved by 20 percent on a year on year basis in April 2017.

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