Wednesday, 3rd September 2014

Govt sets tax revenue target at Rp1,178.9 trillion

Jumat, 17 Agustus 2012 00:01 WIB | 697 Views
Jakarta (ANTARA News) - President Susilo Bamang Yudhoyono said of the state revenues set at Rp1,507.7 trillion in the 2013 draft state budget, a total of Rp1,178.9 trillion will be contributed by tax receipts, up by 16 percent from that in the 2012 revised state budget.

"With the relatively big increase, the tax receipts will contribute 80 percent of the total state revenues," the president said when delivering the government`s financial notes and the 2013 Draft State Budget in a plenary of the House of Representatives (DPR) here on Thursday evening.

He said that with that amount , the ratio of tax receipts against the Gross Domestic Product (GDP) would also increase from 11.9 percent in the 2012 revised state to 12.7 percent in 2013.

The head of state said that the tax ratio did not yet include regional tax receipts and income obtained from natural resources, which in countries grouped in the Organization of Economic Cooperation and Development (OECD), were also taken into account in calculating the tax ratio.

"If we take regional tax receipts and receipts from natural resources into account, then our tax ratio in the last four years has risen from 14.1 percent in 2009 to 15.8 percent in 2012," Yudhoyono said.

Therefore, in order to achieve its goals in 2013, the government is resolved to continue tax reform steps. "We will continue to improve tax polices by among others widening the tax resource basis, particularly in tax, while at the same time improving the people`s purchasing power of the lower income people and improving small and middle scale businesses.

The government has set a total revenue of Rp1,507.7 trillion in the 2013 Draft State Budget with a state expenditure of Rp1,657.9 trillion, meaning that the 2013 Draft State Budget will have a deficit of Rp150.2 trillion, or about 1.6 percent of the Gross Domestic Product (GDP).

The deficit declined by 2.23 percent if compared with that of the revised 2012 state budget.

The 2013 Draft State Budget was set based on the assumptions of economic growth of 6.8 percent, inflation of 4.9 percent, three-month state debenture interest rate of five percent, oil price of US$100 per barrel and gas lifting of 1.36 million barrels equivalent oil per day.(*)