JAKARTA: Indonesia House of Representatives approved the final version of Indonesia’s 2015 Budget, which targets a significant increase in tax revenue to produce a reduced 1.9 percent budget deficit for the year.
This would be lower than the 2.2 percent shortfall estimated in the preliminary budget approved in September last year, before President Joko Widodo’s Government came to office.
Revenues are due to rise to IDR1,440 trillion, up from IDR1,140 trillion last year, to enable increased spending on infrastructure and welfare, through tax administration improvements and a broadening of the tax base. Value-added tax-registered businesses will be required to provide tax invoices to support input tax credit claims, and the Government is seeking to increase oversight in the area of transfer pricing.
To broaden the narrow tax base, the tax authority is to collate extra data on current and prospective personal and corporate taxpayers, and the Government is planning a tax amnesty for undeclared income.
