Tax receipts grow at slow pace until late May: Minister

Tax receipts grow at slow pace until late May: Minister

Finance Minister Sri Mulyani spoke during a press conference on the state budget on Friday (June 21, 2019) (ANTARA PHOTO/Hafidz Mubarak A/hp.)

We need to stay alert for the PPN which grew negatively due to the high refunds and declining import performance
Jakarta (ANTARA) - Finance Minister, Sri Mulyani Indrawati, said tax receipts in the first five months of 2019 grew at a slower pace than during the same period last year, as several income sources were contracted.

"PPh (income tax) on non-oil/non-gas commodities grew slowly, while PPN/PPnBM (value added tax/luxury sale tax), import duty and export tax were impacted negatively," she said during a press conference on the development of the state budget in Jakarta on Friday.

The minister said tax receipts until late May 2019 reached Rp569.3 trillion, comprising PPh on non-oil/non gas commodities worth Rp294.1 trillion, PPN/PPnBM worth Rp173.3 trillion, excise worth Rp56.2 trillion, import duties worth Rp15 trillion, export tax worth Rp1.5 trillion and PPh on oil and gas Rp26.3 trillion.

The state revenues from PPN/PPnBM fell 4.4 percent from Rp181.3 trillion, import duties declined 3.34 percent from Rp15.4 trillion and export tax decreased 46.28 percent from Rp2.8 trillion the previous year.

"We need to stay alert for the PPN which grew negatively due to the high refunds and declining import performance. PPh on non-oil/non-gas commodities is quite positive despite pressure impacting PPh 22 on imports, 23, 25/29 (corporate/final) and 25 negatively," she said.

This condition caused state revenues from tax receipts and excise to grow only 5.7 percent compared to 14.5 percent during the same period last year, she remarked.

However, state revenues from PPh article 21 rose 22.5 percent to Rp65.22 trillion, PPh on individuals increased 14.5 percent to Rp7.62 trillion and PPh on corporate bodies rose 5.1 percent to Rp109.58 trillion.

"So, this is the picture of our economy, which appears somewhat mixed, with the business sector coming under pressure, though employees and individuals are still strong to pay tax above 20 percent. We must cautiously monitor the economy in May, particularly the sectors which were impacted negatively," she said.

Based on the provisional realization, to meet the target of 100 percent in the state budget, state revenues in the June-December 2019 must grow 14.3 percent compared to the same period last year, she said.

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