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Too high tax revenue target frightens businesspeople

Too high tax revenue target frightens businesspeople

JAKARTA: This year, the government is set to increase tax revenue by 10.94 percent of Rp 1.42 quadrillion (US$99.39 billion) as stipulated in the 2017 state budget. But, if the 2018 tax revenue target is calculated based on the realization of last year’s target, which was at Rp 1.15 quadrillion, while the tax office is assigned to collect Rp 1.62 quadrillion, this year’s target will see a growth of 23.71 percent.

PT Indofood Sukses Makmur director Franciscus Welirang expressed his concern as he believed that businesses would become victims of a high tax revenue target. It is frightening to see the 20 percent target,” he said, as quoted by tribunnews.com on Monday. Similar comments came from the chairman of Indonesia’s Chamber of Commerce and Industry (Kadin Indonesia), Rosan Roeslani, who said the government’s target was too high, considering this year’s tax revenue shortfall.

He was particularly worried about the implementation in the field. “The government needs to be careful ” Rosan added.

Meanwhile, Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo agreed that the tax revenue target was too high while the capacity was limited.