Tax Receipts May Fall Rp120 Trillion Short Of Target: Minister

Jakarta (Antara Bali) -- Finance Minister Bambang Brodjonegoro has predicted that the tax receipts target for 2015 may fall short by Rp120 trillion due to the low prices of commodities worldwide  and the rupiah's weakening against the dollar.

"We believe there could be a potential shortfall of Rp120 trillion, or even higher," he said here on Friday.

The government had set the budget deficit target in the revised 2015 state budget at 1.9 percent of the national gross domestic product (GDP). It is determined to maintain the deficit at not more than 2.2 percent of the GDP.

"We will maintain the deficit at 2.2 percent," the minister affirmed.

One of the factors causing tax receipts to fall short of the target of Rp1,244.7 trillion this year is the declining revenue from income tax in the oil and gas sector.

State revenue from income tax in the oil and gas sector is expected to plunge this year due to the weakening price of oil worldwide, which is a result of geopolitical factors.

At the end of June, state revenue from income tax in the oil and gas sector fell sharply to Rp27.7 trillion from Rp44.6 trillion in the same period last year.

In addition, state revenue from value added tax and luxury sales tax also dropped to Rp175.1 trillion at the end of June from Rp185.3 trillion in the corresponding period last year.

To offset the shortfall of tax receipts, the Directorate General of Taxation has issued a reinventing policy to cover a call for all taxpayers to correct their tax returns of the past five years on their own and settle due taxes without administrative sanctions.

Director General of Taxation Sigit Priadi Pramudito said that the move had been able to raise tax receipts by Rp30 trillion till early July. (WDY)