Aditya Suharmoko, Jakarta – Growth in tax revenue has continued to decline towards the year's end, as the slowing down of the economy has reduced output, the tax office says.

Darmin Nasution, director general for taxation at the finance ministry, said Friday the growth of tax revenue had reached 52.94 percent in the first three months of 2008, compared to the same period in the previous year, but that growth in revenue had declined to 41.04 percent overall between January and November, compared to the same period in 2007.

Meanwhile, excluding oil and gas tax revenue, the growth in tax revenues up to November was only 37.63 percent higher than in 2007, instead of 45.92 percent including oil and gas.

"There was a slight slowdown from quarter to quarter. Although the growth rate remained high as of November, it slowed down due to the impact of the financial crisis in developed countries," he told a press conference.

Darmin has said revenue from value added and luxury taxes would drop sooner than from income tax as businesses expect a slower economy in 2009, reducing the imports that contribute to value added and luxury taxes.

The World Bank predicted Indonesia's economy would grow by 4.4 percent next year, while Finance Minister Sri Mulyani Indrawati still expected the economy to grow at between 5 and 5.5 percent.

According to the tax office, tax revenue, the largest single income contributor to the state budget, may fall below target next year due to the economic slowdown. The tax office expects to collect Rp 650.3 trillion (US$58.85 billion) in tax revenue in 2009, or about 70 percent of projected total state revenues of Rp 985.7 trillion.

Darmin said his office would strive to reach the figure next year.

The directorate general has pushed additional potential taxpayers to get a tax registration number (NPWP) and join the existing 6 million registered taxpayers. Incentives included eliminating the penalty for unpaid taxes if people applied for an NPWP before the year's end.

"Usually about 7,000 people apply for an NPWP in a day, but in the past 10 days the number rose to 75,000 people per day," Darmin said.

By of the end of November, the state had received Rp 508.48 trillion in tax revenue, a 41.04 percent increase from Rp 360.51 trillion between January and November last year.

In total, Darmin added, the figure made up 95.13 percent of the full-year target stated on the 2008 state budget, higher than the 80.41 percent achievement recorded in 2007.