JAKARTA. The government’s 2016 tax revenue target of Rp 1.36 quadrillion is overly ambitious, as it ignores the fact that a proposed tax amnesty – which is expected to drastically boost revenue – has yet to be approved, an analyst has said. Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said the 2016 tax revenue target had jumped more than 25 percent from last year’s realization of Rp1.06 quadrillion (US$80 billion). “As the economy has not recovered, and the economic indicators do not greatly differ from 2015, there is a risk that the government will miss its target. Economic distortion can itself cause serious damage to an economy,” he told thejakartapost.com on Sunday.
Govt tax target too high: Analyst
JAKARTA. The government’s 2016 tax revenue target of Rp 1.36 quadrillion is overly ambitious, as it ignores the fact that a proposed tax amnesty – which is expected to drastically boost revenue – has yet to be approved, an analyst has said. Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said the 2016 tax revenue target had jumped more than 25 percent from last year’s realization of Rp1.06 quadrillion (US$80 billion). “As the economy has not recovered, and the economic indicators do not greatly differ from 2015, there is a risk that the government will miss its target. Economic distortion can itself cause serious damage to an economy,” he told thejakartapost.com on Sunday.