Govt trying to maintain tax receipts from non-oil/non-gas sector

The government will make every effort to maintain tax receipts from the non-oil/non-gas sector in anticipation of the declining tax accruals from the oil/gas sector in 2016, Finance Minister Bambang Brodjonegoro said.

"We will maintain tax accruals from the non-oil/non-gas sector as tax earned from the oil/gas sector, including non-tax state revenues (PNBP), will automatically decline," he said here on Friday.

Efforts to maintain tax receipts from the non-oil/non-gas sector include upholding the law against personal and corporate taxpayers who have not paid their taxes, he said.

"We will focus on personal taxpayers and later foreign investment companies that have never paid tax in the past 10 years and intensify the process to register new taxpayers," he said.

To bring the target of tax receipts in 2016 closer to tax potential, the government will adopt a legal mechanism to grant tax amnesty, he said.

The government will soon convey the revised draft of the 2016 state budget which will include several changes in macro assumptions, government spending retrenchment plan and revision of state revenues from the tax and non-tax sectors.

He said the tax receipts target was being revised in view of the anticipated shortfall in income tax receipts in the oil/gas sector, compared to the target of Rp17 trillion in the state budget, due to declining oil prices.

Non-tax state revenue from the oil/gas sector has also been revised downward to Rp50.6 trillion, while non-tax state revenue from the non-oil/non-gas sector has been projected to decline to Rp25 trillion.

The revised draft 2016 state budget also contains government spending retrenchment plan, including the spending of ministries and government institutions set at Rp46.1 trillion, and fund transfer to regions at Rp12 trillion.

The government has also projected a budget deficit of Rp313.2 trillion or 2.5 percent of the national gross domestic product for this year.

Source: Antara News