GOVT NEEDS NOT CUT 2010 TAX RECEIPT TARGET: LAWMAKER

Jakarta, Apr 5 (ANTARA) - The government does not need to revise downward the target of tax receipts for this year as the economic growth target remains unchanged, a legislator said.

"Since 2008 there has always been proposal for a reduction in the target of tax receipts in the revised state budget," Chief of the House of Representatives' Budgetary Committee Harry Azhar Azis said in a dialog here on Monday.

In the revised 2010 state budget the government had lowered the target of tax receipts including excise to Rp733.2 trillion from Rp742.7 trillion, or 1.3 percent down, he said.

The tax ratio fell to 11.7 percent from 12.4 percent due to an increase in gross domestic product (GDP), he said.

He said state revenue from income tax was expected to fall Rp2.57 trillion, value added tax on imports Rp19.71 trillion, property tax Rp1.18 trillion, and international trade tax including import duty and export duty Rp4.28 trillion.

In the revised 2010 state budget the government had proposed the inflation rate target be raised to 5.7 percent from 5.5 percent, interest on Bank Indonesia certificate for three-month deposit to 7.0 percent from 6.5 percent, the rupiah's exchange rate to 9,500 from Rp10,000 per dollar, oil price to US$77 from US$65 per barrel, he said.

However, he added, at their initial discussion both the House and the government agreed to set the economic growth rate target at 5.5-5.7 percent, the inflation rate target at 5.0-5.5 percent, the rupiah's exchange rate at Rp9,100-Rp9,500 per dollar and oil price at US$65-85 per barrel.