The growth is negative 0.46, but as compared to last year, this growth is already better because in April 2020, the contraction in tax revenue is three percent, so there is a change in direction
Jakarta (ANTARA) - Tax revenue until the end of April 2021 had reached Rp374.9 trillion, or 30.94 percent of the total target for this year of Rp1,229.6 trillion, according to Finance Minister Sri Mulyani Indrawati.

Indrawati noted that despite the tax revenue of Rp374.9 trillion having contracted 0.46 percent (yoy), it was still better than minus three percent during the corresponding period last year.

"The growth is negative 0.46, but as compared to last year, this growth is already better because in April 2020, the contraction in tax revenue is three percent, so there is a change in direction," the minister noted here, Monday.

According to Indrawati, based on all types of taxes, there were indications of recovery despite not all sectors having recovered, thereby indicating that tax revenues had begun to change direction for improvement.

"Hence, our challenge is not all sectors have recovered, but some have recovered significantly," she remarked.

The minister detailed several types of taxes that experienced recovery, including corporate income tax that grew to 31.1 percent and domestic value-added tax (VAT), which despite having contracted on a net basis, grew by 6.4 percent on a gross basis.

"Our net domestic VAT contracted but grew by 6.4 percent on a gross basis. This shows that the underlying transaction has gone up. We will also look at various other indicators of economic recovery,” the minister expounded.

However, Indrawati called for the need for strong synergy to achieve the revenue target for restoring the economy and boosting the people's welfare as the COVID-19 pandemic had not ended.

The minister stated that one form of this synergy was the inauguration of 18 new Intermediate district tax offices (KPPs) to complement the existing 20 intermediate KPPs, including 15 intermediate KPPs in Java and three intermediate KPPs outside Java.

Indrawati affirmed that the addition of 18 Intermediate KPPs was not only to increase the number of Intermediate KPPs but also to offer better and more integrated services for taxpayers.

The minister emphasized that through this step, a total of 38 intermediate KPPs were assigned responsibilities and contributed to 33.79 percent of the total revenue target.

"This means the performance of Intermediate KPPs will greatly determine the performance of our overall tax revenue," she stated.
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Translator: Astrid H, Azis Kurmala
Editor: Fardah Assegaf
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