Tax Office to Cut Tax Collection By Rp70 Trillion

JAKARTA (Yosefardi) – Tax Office purposes a cut of tax collection by Rp70 trillion from target Rp1,110 trillion set on 2014 state budget.

The cut is needed as the Tax Office lacks human resources. Should add 20,000 new staffs, the tax collection target could be achieved.

In 2013, tax collection reached Rp832 trillion or 89% of its target (Rp921 billion). Tax Office had collected tax of Rp71.53 trillion in January this year, excluding income tax.

Adjustment in tax revenue might lead to significant correction in government spending, especially if fuel subsidies will be maintained at the current level.