President Joko Widodo (Jokowi) presented a draft state budget for 2016 to the House of Representative early this week with tax revenue target at Rp1,565.8 trillion.
Jakarta (ANTARA News) - A number of factions in the House of Representatives described the tax revenue target set in the draft state budget for 2016 as not realistic.

President Joko Widodo (Jokowi) presented a draft state budget for 2016 to the House of Representative early this week with tax revenue target at Rp1,565.8 trillion.

Spokeswoman of the opposition Gerindra party Rachel Maryam said considering the performance in the past years, it was impossible to reach the target.

In the past year , realization was only around 90 percent of the target, Rachel said on Thursday.

If the target could not be reached the government has to seek for loan to add to the state debts in order to plug up the deficit in spending, she said.

"The government has always issued bonds when income fell short of target. With new debt, the government diluted the currency hurting the people," she said.

Spokesman of the Prosperous Justice Party (PKS) Abdul Fikri Faqih urged the government to review the target which is relatively high, and the tax ratio needs improvement.

Tax revenue target has never been reached and the tax ratio has remained stagnant from year to year, Abdul Fikri said.

Golkar party spokesman Ridwan Bae said he doubted that the target could be reached, pointing to performance in 2015.

In 2015, realization until end of July was only Rp531.1 trillion or 41.04 percent of the target of Rp1,294.2 trillion set for the year.

"The shortfall is too high, therefore it would be better if the target is corrected to be more realistic," he said.

Earlier, Finance Minister Bambang Brodjonegoro said the government still hoped to reach the target through intensification and expansion of tax objects.

"The government would rely on expansion and intensification while maintaining good investment climate , economic stability and purchasing power of the people," the minister said.

In addition, the government would improve services in regulations, administration and accountability to increase tax payers obedience, he told reporters in a news conference after the government presented the draft state budget and financial note at a plenary session of the parliament.(*)

Editor: Heru Purwanto
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