JAKARTA: The government has only managed to collect 26.8 percent of its total tax revenue target set in the 2016 budget in the first five months of 2016.
As of May 31, Indonesia recorded Rp 364.1 trillion (US$27.41 billion) in tax revenues, while in the state budget, the government targeted tax revenues of Rp 1,360 trillion for the whole year. In the same period in 2015 the government collected Rp 377.03 trillion.
The government blamed the shortfall on a slow domestic economy slowdown and slow export-import activities that led to a 3 percent drop of non-oil and gas income tax and value added tax. In addition, falling oil prices made oil and gas income tax drop 17 percent.
About the meager achievement, the taxation directorate general’s tax obedience director, Yon Arsal, said revenues from individual income tax amounted to Rp 3.4 trillion, although the target was Rp 18 trillion by year-end.
“The income tax revenues from individuals is not directly reflected in the beginning of the year. The result will be seen in the first half,” Yon said.
However, Finance Ministry spokesman Luky Alfirman said he believed individual income tax revenues will grow in coming months, in line with an increase of private consumption during Ramadan and the Idul Fitri holiday.
