Aditya Suharmoko, Jakarta – Improved tax collection by extending the tax base and modernizing the tax system have boosted tax proceeds by 46 percent during the first eight months of this year, Finance Ministry's director general of taxation Darmin Nasution says.
Darmin said tax revenues from the non-oil-and-gas sector jumped to Rp 318,74 trillion (US$34.6 billion) between January and August this year, as compared to Rp 218,33 trillion in the same period last year.
"If we see growth, this is mostly because of improvements in the tax office to boost taxpayer compliancy," said Darmin on Tuesday.
If included with the tax revenue from the oil and gas sector, the total figure for 2008 reaches Rp 367.63 trillion, up by 49.5 percent from Rp 245.8 trillion.
Darmin said the overall tax revenue figure for 2008 was already at 68.78 percent of the full-year target of around Rp 534.53 trillion, which should be collected by the directorate.
Between January and August, the collection of income tax in the non-oil-and-gas sector soared by 36.68 percent to Rp 167.9 trillion, value-added tax (VAT) and luxury tax by 63.51 percent to Rp 131.85 trillion and land and property tax by 27.6 percent to Rp 13.70 trillion.
The directorate also reported that tax refunds reached Rp 21.25 trillion, mostly from VAT, land and property tax.
As part of improving tax compliance, the directorate has thus far banned 43 taxpayers from traveling overseas due to their failure in paying taxes amounting to more than Rp 100 million.
The tax office will also team up with the State Development Comptroller (BPKP) to squeeze more taxes from the construction and real estate sectors, as well as the financial sector.
Darmin said many companies operating in these sectors paid taxes below the benchmarks estimated by the directorate.
In the proposed 2009 state budget, the directorate will intensify tax collection from the pulp and paper sector, in addition to this year's focus on the plantation and mining sectors.
"Tax revenue in 2009 can grow about 20 percent (from this year's revenue)," he said, adding that the figures took account of Rp 40 trillion in potential lost revenue, as the result of amendments to improve the income tax law.
Next year, the tax directorate is tasked with collecting Rp 650.29 trillion of taxes.