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Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono said tax contributions to state revenue must keep increasing in line with economic growth and industrial sector activity in the country.

"Due to provision of good service, good tax payers` compliance and good tax management from year to year tax contributions to state revenue have been growing. A state revenue will be good if it mostly comes from tax. In developed countries the percentage of tax contributions to state revenue is between 70 and 80 percent. If we could achieve that we are close to reaching a healthy ratio," he said after submitting his annual income tax report to the Directorate General of Taxation here on Wednesday along with several other high ranking officials.

He said three things need to be done to promote success in the tax sector namely pushing tax officials to provide the best service, improving tax payers` compliance and tax fund management and control.

The President said tax revenue should increase in line with the growing economy, the strengthening of the buying power and the increasing income per capita and improving compliance.

"We wish the economy will continue to grow, the income per capita rise, and wealth distribution more just and spreading. That is the concept, our aim and goal," he said.

The President expressed the wish that in the next five years the country`s national budget would reach Rp2,000 trillion while the GDP reaching Rp10,000 trillion or twice the current budget and GDP so that more could be done by the government to improve the people`s prosperity.

"With the growth reaching that level more could be done for the nation. With it we could reduce poverty, increase grassroots` income, create more jobs, improve education and development of small and medium businesses and infrastructure which are all needed by the people," he said.

In view of that the role of tax revenue would be very important and the government would continue improving the tax collection system and tax policy including improving good governance.(*)

Editor: Heru
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