Indonesia targets tax to GDP ratio in 2014 at 14 pct

Indonesia plans to increase the tax-to-GDP ratio to 14 percent in 2014, from 13.3 percent at present supported by improving economic growth and stronger regulatory enforcement, the finance ministry said here Monday.

Indonesian Finance Minister Sri Mulyani Indrawati was quoted by Bisnis Indonesia as saying that the tax revenue would be more dominant in contributing to the state revenue in the coming years.

A tax analyst from the Tax Center of the Indonesian University named only Darusslam said that the target in 2014 was possible to be achieved as the number of tax payers had risen through the government easing policy in the sector, so called the "Sunset policy."

According to the tax department of the Finance Ministry the tax-ratio-to GDP in 2008 was 13.3 percent and in 2009 it is predicted to 13.7 percent.