Gross tax revenue is growing at roughly 13 to 14 percent, Director General of Taxes Bimo Wijayanto said on Thursday. He told reporters the figure shows the tax collection machinery is strengthening.
Growth against the benchmark
Bimo compared that pace with a benchmark built from economic growth and inflation. He assumed economic growth of 5.5 percent and inflation of 2.5 percent, which together give about 8 percent. On that basis, he said, revenue is growing about 6 percentage points faster than the combined benchmark.
Bimo credited several factors for the gain. He cited the Coretax system, the quality of analysis by field staff, examinations and law enforcement. He said each is getting better.
Revenue ratio still unresolved
Bimo acknowledged that the state revenue-to-GDP ratio remains unfinished. He attributed part of the gap to how fiscal policy is designed, not only to tax administration.
The non-taxable income threshold, known as PTKP, is about 6.7 times the poverty line, according to the article. Bimo put the PTKP at 130 percent of GDP per capita at its initial setting. He said the current ratio is 60 to 70 percent.
Limits of the directorate
Bimo said the directorate cannot raise revenue alone. He said spending, financing and macro fiscal policy must be weighed together. He asked how development funding would be handled and how the 3 percent deficit limit would be kept.
