Indonesia’s tax receipts until October cross Rp1,000 trillion

Usually, income tax under article 21 increases at the end of year since most of it is underpaid during the January-November period.

Jakarta (ANTARA) – Indonesia’s tax receipts until the end of October 2019 are estimated to have crossed Rp1,000 trillion, the Directorate General of Taxation stated.

The figure is a provisional forecast since the counting process is yet underway, Director of Tax Potential, Compliance and Receipts of the Directorate General of Taxation Yon Arsal stated in Jakarta on Friday.

“There is no reconciliation today as there are still value-added tax receipts whose amount is quite large,” he pointed out.

He expressed hope that tax receipts would increase at the end of this year, especially from value-added tax, treasury services, and underpaid income tax (PPh) under article 21.

“Usually, income tax, under article 21, increases at the end of the year since most of it is underpaid during the January-November period,” he stated.

Yon remarked that tax collection during 2019 encountered several challenges owing to global pressure that affected the domestic economy.

On the other hand, the government made an endeavor to boost investment by offering tax incentives, among others.

Furthermore, tax authorities also attempted to ensure that tax receipts until the end of this year would not fall too short of the target set in the state budget, he stated.

“The economic pressure is quite high. However, on the other hand, we also have to contribute to boosting investment,” he added.

Source: ANTARA News