Top official: Tax office working ‘extra hard’ to narrow shortfall

With only one month to go, the Directorate General of Taxation would need to collect Rp 273 trillion (US$18.69 billion) to meet the tax revenue target of Rp 1.42 quadrillion stated in the 2018 state budget.

“Tax collection slowed down in November, but in October it grew 17.6 percent. Still, we have to work extra hard to achieve the Rp 1.35 quadrillion tax revenue, or 94 percent [of the total annual target],” Taxation Director General Robert Pakpahan said in Jakarta on Tuesday.

Rp 1.35 quadrillion marks a downward revision from the figure stated in the state budget in light of the economic slowdown observed in the course of the year. Under the revised target, the tax shortfall would be Rp 73.1 trillion.

Last year, the tax office only collected 89.68 percent of the target stated in the 2017 state budget.

Robert said it was still not easy to meet the revised target, because within one month, the tax office needed to collect Rp 214.3 trillion in tax revenue.

He added, though, that the tax office, in December 2017, had managed to collect Rp 167 trillion, which was 14.5 percent of the total annual target that year.

“If we can collect 14.2 percent of the tax revenue from the overall annual target in 2018, we would meet the 94 percent revised target. It is still difficult, but not impossible,” Robert said as quoted by, adding that the tax collection would be supported by government spending and a boost of economic activity during the year-end celebrations.

However, he said the tax office had not prepared any particular strategy to boost tax revenue in the remaining days.

Source: The Jakpost.

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