Jakarta-Members of Parliament Finance Committee, Kemal Azis Stamboel, urged the government to establish liability using letters of credit (letter of credit or L/C) in mining transactions at home and abroad. "With the L/C will be seen how the value of the transaction was actually,"

he told. Kemal said the slipping of Acceptance of the Value Added Tax (Vat) is caused by the sale of mining products are not much use of L/C. Unrecorded transactions data are clear and the government have a hard time verifying the amount of tax to be applied.

Previously the Director General of Taxes Fuad Rahmany said tax revenues did not reach the 2011 target due to Vat receipts fell. Vat value of Rp 277.73 trillion, grew only 20 percent, far below the target growth of 29 percent. In addition to its mining tax that is not recorded, declining tax revenue can be caused by the granting of fiscal incentives.

Last year the realization of tax revenue to reach Rp 872.6 trillion or 99.3 percent of the target. Tax revenue consists of income tax revenue of Rp 431.08 trillion (99.8 percent), VAT amounting to Rp 277.73 trillion (93.06 percent), as well as property tax valued at Rp 29.89 trillion (102.86 percent).

This year the tax revenue target set at Rp 1032.57 billion or 78.74 percent of the revenue plan Revenue Expenditure Budget of Rp 2012 trillion 1311.38.