Local Taxes Not Calculated, Ratio of Tax Rise Just 0.1%

Local Taxes Not Calculated, Ratio of Tax Rise Just 0.1% - Overall revenue target the state's tax from the sector increased 12.9 percent compared to the budget-P 2010. But if the view of its contribution to Gross Domestic Product (GDP), the upcoming 2011 tax ratio will rise only 0.1 percent from 11.9 percent in 2010 to 12 percent in 2011.

Responding to the tax ratio rose only 0.1 percent, Finance Minister Agus Martowardojo said that the increase of 0.1 percent has been through a logical calculation. One of them, the increase in tax ratio must be viewed from the Growth Domestic Product (GDP).

"We do know, Indonesia's GDP in the year 2011 approximately Rp1.000 trillion. Now just in the month of July was Rp6.000 trillion. So the tax ratio is the ratio of tax revenue compared to GDP. So the increase was 0.1 per cent to 12 kitakan percent but GDP rises, "said Agus told reporters at the office of Coordinating Minister for economy, Jakarta, Tuesday (17 / 8).

Agus said the government was not able to radically raise the tax ratio because it should be thorough consideration. Moreover, the tax ratio in Indonesia should be prepared carefully because it is different with the preparation of the tax ratio in foreign countries.

"If overseas, the tax ratio, including local tax revenues. While we are in calculating the tax ratio does not include it," said Agus.

In the financial memorandum Draft Budget 2011, tax revenue is targeted Rp839, 5 trillion. Tax Receipts consist of Rp414, 5 trillion, revenues from VAT and luxury sales for Rp309, 3 trillion and the United Nations for Rp27, 7 trillion.

To raise the tax ratio is higher than 12 percent, said Agus had to go through a maximum preparation. Not only to its tax institutions but also on the tax administration system. Moreover, said Agus, currently the awareness of agencies and individuals to pay taxes on time is still low.

"So the next Director General of Taxation would have to continue to reform itself, improve adminitrasinya system, improve the legal system and rules, memperbailki human resources and make efforts to explore the potential of existing taxes. If this is done, we'll Insyallah tax ratio very well," said Agus.

Earlier, President Susilo Bambang Yudhoyono when delivering the government's financial memorandum on the 2011 Draft Budget to the House of Representatives, Monday (16 / 8), stating that in the upcoming Budget 2011 tax revenue is planned to reach Rp839, 5 trillion, or about 77 percent of total revenues and grants.

That amount, according to the President, has increased by Rp96, 2 trillion, or about 13 percent of the tax revenue target in 2010. With total tax revenue amount, then the ratio of tax revenue to GDP, or our tax ratio increased from 11.9 percent in 2010 to 12.0 percent in 2011.