Government to Improve Increase Tax Revenue with IT System

   •    14 September 2017 12:30 WIB
Government to Improve Increase Tax Revenue with IT System
People's awaited for tax amnesty program at Directorate General of Taxation (Photo: Media Indonesia)., Jakarta: Coordinating Minister for Economy  Darmin Nasution said lower than expected revenues from taxes so far this year could be improved by mending administration with system of information
technology (IT).
"Tax IT system is in the process of improvement though it is not a short term process. It is not a start from zero, but it an improvement," Darmin said here on Wednesday.
The government has announced that tax revenue until August this year reached only around 53 percent of the whole year target causing pessimism that the state revenues from taxes would fall short of the target again this year.
Darmin said with improvement in taxation system the government spending could be focused more on development  in last two quarters this year.
"Revenues have to be increased . We have nothing to spend without revenue," he said after a working meeting with the Parliament commission.
He said normally tax revenues were higher in the third  and fourth quarters of a year, adding if the budget could be increased, the economy would be better than last year.
He said in addition to relying on government consumption, which had no much improvement in the first half of 2017, he predicted that the economy would grow better this year driven by the investment and export sectors.
"The investment growth is higher this year than last year. Exports also are growing. Household consumption may be slightly lower. What is left is only budget," he said.
Earlier the Central Bureau of Statistics (BPS) said the country's economy grew 5.01 percent in the first half of 2017 thanks to better investment and export performances.
In the second quarter of 2017, a contraction of 1.93 percent was recorded in the government consumption on shrinking civil servants' allowances and goods spending from 2016.
Separately, Finance Minister Sri Mulyani Indrawati predicted the country's economy would grow 5.17 percent  or slightly below the target of 5.2 percent set in the state budget. (ANTARA)