Indonesia's Tax Revenue Growth in 2017 Reaches 13% due to Tax Amnesty and Economy Growth

 

Indonesia is much confident to have a significant increase of tax revenue at rate of 13% in 2017. Finance minister sri muly

ani explained that this is possible to attain such high rates of tax revenue provided the government is capable to reach economy growth 5.1% and maintaining the inflation rate at 4%.

According to sri mulyani, it's important for the government to maintain economy with in the country and resisting the influence of sluggish global economy especially in term of export. The country's economy relies much on household  expenditure and infrastructure projects. Government also looks to keep design of the state budget by maintaining its deficit 2.4%.

The confidence of finance minister to reach 13% tax revenue rate is based on the success of tax amnesty.  Tax amnesty helps much the government to expand its tax base. The increase of tax base helps the government to trawl large taxpayers thus increasing the revenue and creating the healthy state budget for the government projects.

The claim of tax amnesty after only twp months since been settled by government is not base less. JP morgan, finance analyst office based in USA consider tax amnesty of indonesia as the most successful ever. 

It exceeds the expectation of government that total declared asset would only reach $30 to $50 billion  or around 400 trillion converted to rupiahs. In fact for only two months total declared asset has reached more than $1000 trillion.

The only challenge of government is global economy slow down to reach targeted tax revenue rate 13% in 2017. This means government can not rely to much on export sector but increase consumption and government infrastructure projects. 

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