Monday, December 6, 2010

Tax Ratio to GDP Reaches 15.7 Percent

Monday, December 6, 2010

Jakarta, The ratio of tax receipts to the domestic gross products (GDP) has reached 15,7 percent, Taxation Director General Mochmad Tjiptardjo said.

"So far the calculation of the tax ratio to the GDP did not include receipts from regional and natural resource taxes. If all are calculated, the ratio of total tax receipts to the gross domestic products would reach 15.7 percent," the director general said when he popularized taxation in Ciawi, West Jave, over the weekend.

Mochamad Tjiptardjo said that various quarters had so far considered that Indonesia had been behind neighboring countries in terms of tax receipts.

"A comparison must be made apple-to-apple. They (neighboring countries) include regional taxes while Indonesia so far has only calculated national tax receipts," the director general said.

He said that the national tax ratio in the last several years had been going up and down. The tax ratio in 2009 reached 11.9 percent, while in 2010 it was 12.1 percent and in the previous years it was recorded at 13 percent.

The director general said that the tax ratio in 2011 and in the following years would move dynamically. After all, it will include taxes on land and buildings (PBB) as well as on obtaining titles of land and building (BPHTB).

"The ratio of tax receipts to GDP will continue to drop if tax receipts only include national taxes, but if regional and natural resources taxes are also calculated, the ratio will reach 15.7 percent," he said.

He said with that figure, Indonesia`s tax ratio to the GDP was not far different from those of other neighboring countries in Southeast Asia.

Regarding tax incentives to boost businesses, Tjiptardjo said the government was providing a number of facilities such as tax allowance and acceleration of write-off.

"The government is also studying the possibility of providing tax-holidays," he said.

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