Indrawati noted that the income plunged 12.4 percent year-on-year (yoy) as compared to the corresponding period in 2019, at Rp1,052.4 trillion, which grew 5.8 percent from July 2018.
"The growth is minus 12.4 percent, one of the reasons being that more people and the business world are capitalizing on tax incentives," he said during the state budget press conference in Jakarta on Tuesday.
The minister remarked that state revenue fell since tax revenue contracted by nearly 12.3 percent yoy, which is only Rp711 trillion, or 50.6 percent of the state budget change target in Presidential Decree 72 of 2020 amounting to Rp1,404.5 trillion.
Indrawati specified that tax revenues amounted to Rp601.9 trillion, the realization of which was 50.2 percent of the Rp1,198.8 trillion target in Presidential Decree 72of 2020 and contracted by 14.7 percent yoy as compared to Rp705.4 trillion during the corresponding period last year.
The minister stated that almost all major taxes contracted from January to July this year owing to the economic slowdown as a result of the COVID-19 pandemic.
The realization of oil and gas Income Tax (PPh) was Rp19.8 trillion, or 62.1 percent of the target of Rp31.9 trillion in Presidential Decree 72 of 2020 and contracted by 44.3 percent, from Rp35.5 trillion during the corresponding period last year.
Meanwhile, realization of non-oil and gas PPh of Rp582.1 trillion, or 49.9 percent of the target of Rp1,167 trillion in Presidential Decree 72 of 2020, also experienced a contraction of 13.1 percent as compared to Rp669.9 trillion in July 2019.
The realization of customs and excise revenues was Rp109.1 trillion, or 53 percent of the Rp205.7 trillion target set in Presidential Decree 72 of 2020 that could record a growth of 3.7 percent yoy as compared to Rp105.2 trillion recorded during the corresponding period last year.
The positive growth in customs and excise revenues was supported by the realization of excise that reached Rp88.4 trillion, or seven percent higher than last July and constituted 51.3 percent of the target of Rp172.2 trillion in Presidential Decree 72 of 2020.
On the other hand, international trade tax contracted by 8.4 percent, specifically the realization reached Rp20.6 trillion, which is 61.6 percent of the target of Rp33.5 trillion in Presidential Decree 72 of 2020.
Furthermore, non-tax state revenues (PNBP), amounting to Rp208.8 trillion, contracted by 13.5 percent yoy and reached 71 percent of the target of Rp294.1 trillion in Presidential Decree 72 of 2020.
Moreover, state revenue also came from the realization of grant receipts of Rp2.5 trillion that had reached 189.2 percent of the target of Rp1.3 trillion in Presidential Decree 72 of 2020 and grew 561.6 percent yoy from Rp0.4 trillion during the corresponding period of the previous year. Related news: Government targets Rp26.1 trillion of dividend receipts from SOEs
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Translator: Astrid F, Azis Kurmala
Editor: Rahmad Nasution
Copyright © ANTARA 2020
