Darmin: Indonesia Relies Too Much on Corporate Tax Income

Suci Sedya Utami    •    Selasa, 01 Dec 2015 21:48 WIB
economic growth
Darmin: Indonesia Relies Too Much on Corporate Tax Income
Illustration (Photo: Antara/Fiqih Arfani)

Metrotvnews.com, Jakarta: Coordinating Minister of Economy, Darmin Nasution assessed that the economic fluctuations hitting the world, including Indonesia, also scraped off the state income from the tax sector. It is a fact that the realization of national tax income is still very low.
 
According to Darmin, it is because in Indonesia, almost 90 percent of its tax income is gained from corporations. As the result, when economic shakedown occurs such as in the current moment, capital income of the corporate is also scraped, causing their portion of tax payments to decline as well.
 
"If dominated by the company tax, should there any economic slowdown, then the state income slows down, as it may also decline," mentioned Darmin during the Indonesia Economic Outlook 2016, in Borobudur Hotel, Central Jakarta, Tuesday (12/1/2015).
 
The former Director General of Tax added that it is different with the states relying on the tax income from each individual or personal. When the economic pressure hits, it would not have a significant effect on the consumption of the people.
 
"In other countries which as more established, the majority have individual tax from the public, what is the difference? Should there be any economic shakedown, consumption will not change much," he mentioned.
 
Moreover, Darmin added that due to the jammed income, the government will rely more on the their spending or consumption to push the economy forward.



(WAH)