Rabu 01 May 2013 23:52 WIB

Analysts: Govt should revise tax targets

Rep: Muhammad Iqbal/Mutia Ramadhani/ Red: Yeyen Rostiyani
Some analysts suggest Indonesian government to revise its tax target as mentioned in state budget 2013, due to current economic situation which halts the tax target. (illustration)
Foto: Antara/Eko
Some analysts suggest Indonesian government to revise its tax target as mentioned in state budget 2013, due to current economic situation which halts the tax target. (illustration)

REPUBLIKA.CO.ID, JAKARTA - Some analysts suggested Indonesian government to revise its tax target in state budget 2013. Analyst of Indonesian University, Danny Septriadi assessed that Directorate General of Taxation at Finance Ministry had made various effort to increase revenues from taxes. 

"However, the current economic situation halts the achievement on taxes," Septriadi said on Wednesday. 

He suggested government to limit debt to equity ratio (DER). He also criticized that business community often got more loans but in turn it reduced their ability to pay income tax and debt interest payment.

Professor of Indonesian University, Gunadi, said that government still lost its focused to achieve tax revenues. He predicts, if tax revenue in first quarter was only 18 percent, it may increase only 90 percent by the end of the year. It still below 94.4 percent in the previous year.

Based on data from Directorate General of Taxation, tax revenue in 2012 reached 835.25 trillion IDR or 94.38 percent of the target, 885.02 trillion IDR. 

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