Thursday, 17 October 2013

ADDITION OF TAX OFFICIALS WILL INCREASE TAX REVENUES



Increasing the number of tax officials, while maintaining work productivity, is expected to increase tax revenues. This is the statement of Head of External Relations at the Directorate General of Taxation, Chandra Budi, delivered via a press release in Jakarta (Tuesday, September 3), as a response to the many Questions about the effectiveness of the pla to increase the number of tax officials on the increase of tax of tax revenues.

The proposal on addition of employees, especially for the position of Tax Audit and Account Representative at the Directorate General of Taxation has been through a comprehensive analysis and benchmarking. The result comparative analysis between the number of tax officials and the total population in a country shows that the Directorate General of Taxation is still likely to increase the number of employees to be at least close to the comparison ratio in other countries.

In the last four years, the analysis shows a positive correlation between employee productivity, which is reflected in the amount of budget that is used, and the tax revenue realization. In 2009, every Rp 1 billion budget spent would generate tax revenue of Rp 102.7 billion. Then in 2010, every Rp 1 billion budget contributed to Rp 123.1 billion tax revenues. This figure in creasing every year, and in 2012, From Rp 1 billion budget that is used, Rp 163 billion tax revenue is generated.

There was also an increase in employee productivity quite significantly to the realization of tax revenue. In 2009, each employee of the Directorate General of Taxation averagely contributed Rp 17.1 billion to tax revenue realization. This value increased in 2011, where every employee contributed at least Rp 23.4 billion. In 2012, employee contribution is increasing, i.e. every employee of the Directorate General of Taxation contributed Rp 26.6 billion to the realization of tax revenue. 

Business News - September 6, 2013

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