Indonesia Confident About Plans To Double Tax Revenue

by Mary Swire, Tax-News.com, Hong Kong

26 November 2001

Indonesia's Finance Minister, Dr Boediono, has told local reporters that the government is confident that it will fulfil its plans to double the revenue from taxes, accelerating efforts to meet the state budget deficit. 'Extra revenues are expected from more speedy collection of taxes this year,' he said.

Tax evasion has been rife in Indonesia: last year at least half of the country's government officials did not pay tax and of the 20 million or so people that should be paying tax only 1.3 million were registered of whom less than half were dutiful tax payers.

Earlier in September this year, the World Bank (as the country's biggest financier) urged the Indonesian government to improve its tax collection efforts to fund the country's struggling public services and enhance its debt repayment ability. Senior Economist at the World Bank, Bert Hoffman, recommended that the government reduce its tax exemptions, streamline tax administration and promote more awareness of the obligations that taxpayers must meet.

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