Tax Amnesty is Mostly Hard to Attained Successfully, Sri Mulyani Has to Prepare Third Budget Cut

Government is quite vigorous with the policy of tax amnesty since its release. But the realization of tax amnesty in term of ransom fund so far is only Rp 9 trillion out Rp 165 trillion targeted. 

This means the realization of tax amnesty will not be going smooth as it was intially assessed. 

The heavy tasks of finance minister now is to meet the target of tax revenue amounting Rp 1355.2  

trillion and the ransom money Rp 165 trillion from tax amnesty in the State budget amandment 2016.

The economyst analysis are hesitant if the government will be able to pursue the target. Committee member of the national economy and industry(KEIN) sudhamek said the target the ransom of tax amnesty Rp 165 trillion is pretty much difficult to reach. On the other hand sudhamek assessed it will only reach Rp 100 trillion or the minimal Rp 50-60 trillion.

As we know, tax amnesty will last on march 2017, this means the achievement of ransom up to december is decisive for the projection of ransom fund realization. He added that if the total ransom fund up to december will not collect Rp 60 trillion, it will be impossible then to meet target Rp 165 

trillion in its deadline. 

Looking on this fact, the government has to anticipate the possibility to prepare the state budget in the midst of minimal revenue. Sri mulyani herself  believes that the total of tax revenue(aside from tax 

amnesty) will only reach 86% thus the potential deficit of budget will be Rp 219 trillion.

In aline with finance minister calculation, sudhamek confirmed that our tax revenue practically never 

reaches the target. Thus finance minister to look for the scenario to save the budget and maintain the 

fiscal deficit below 3% of gross domestic product(GDP).

Sri mulyani has to decide the budget cut to unnecessary expenditure without affecting the productivity for significant sectors like infrastructure. There are still budgets to cut such as business travel, budget meetings.

Head of fiscal policy office( BKF) nazara suahasil admitted that sri mulyani is vigilant to monitor on 

fund ransom, tax amnesty and tax revenue. The government is not totally concerned in tax amnesty, 

instead they also focuses on tax revenue in general like tax collection, excise and non tax revenue to 

fill the budget. 

So far, total tax revenue has reached 44% up to september out of total target Rp 1355.2 trillion.

Nazara said that the tax amnesty especially ransom fund is still not satisfying but the finance minister 

maintain on the good cash flow of the country. The necessary budget cut III will be done if the total 

revenue from tax receipts and tax amnesty will not fully attained.