REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Sri Mulyani Indrawati expressed readiness to evaluate the tax holiday and allowance that were viewed as being less attractive by entrepreneurs.
"We should evaluate the tax holiday and allowance and explore what the industry needs," Indrawati remarked here on Monday evening.
The provision of tax incentives aimed to encourage investment in certain sectors, particularly for the downstream industry.
However, the formulation of tax incentives prepared by the government and the Investment Coordinating Board for the 2007-2008 period should be changed in accordance with the current conditions.
The minister will conduct a preliminary study of the existing issues before changing the form of the incentive scheme.
The change in the tax incentives scheme and its implementation can be conducted quickly, as it is not constrained by the revision of the Act.
"It can be conducted with the issuance of government regulations or a finance ministerial regulation (PMK)," the minister remarked.
Minister Indrawati had earlier stated that the country's tax revenue target, set at Rp1,424 trillion for 2018, or 20 percent higher than last year's realization, can be achieved.
"The 20 percent growth is still within reach," she noted in a dialog with several economic observers and chief editors here on Monday.
The minister believes that several sectors, such as agriculture, manufacturing, and trade, would again contribute to state revenues this year similar to that in 2017.
Indrawati, however, admitted that some other sectors still remained weak and could not yet contribute optimally to the tax income.
"We will not implement the 'one size fits all' principle, but we will consider all sectors. Tax revenue and spending targets have been set in a way that the national budget can serve as a driving force instead of posing a hurdle for the economy," she explained.
In view of this, the minister expressed belief that the tax revenue target that grew by 20 percent than last year would be achieved in line with the realistic calculation used while drafting the 2018 budget.
The calculation was based on a growth assumption of 5.4 percent plus 3.5 percent inflation and four percent additional efforts that have routinely be undertaken.
"We also have an AeOI (agreement on exchange of information). Hence, we had first enforced it without proper information, but now, we have obtained comprehensive information, which means if one has to pay tax, he has to do it," she stated.
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