"The state revenues will decline by about Rp12 trillion, but they will be covered by receipts from the mineral sector because the government will also increase royalties," the Chief Economic Minister Hatta Rajasa stated.Jakarta (ANTARA News) - Chief Economic Minister Hatta Rajasa has declared that state revenues will not decline if the government raises the tax-free income ceiling to Rp24 million per annum, because the deficit will be covered by receipts from the mineral sector.
"The state revenues will decline by about Rp12 trillion, but they will be covered by receipts from the mineral sector because the government will also increase royalties," the minister stated here on Monday.
He added that the government will also obtain additional income from the consumption sector, because it is expected that the people`s purchasing power will increase.
"On the other hand, the people`s purchasing power will increase, which will generate the economy from the consumption aspect," explained the Coordinating Minister for Economic Affairs.
The government will also tighten its control over the country`s export performance in anticipation of reduced revenues, the minister asserted.
"Exports must be assured with complete documents, because they are related to the state revenues," he noted.
The minister remarked that the government`s plan to raise the tax-free income ceiling from Rp15.8 million to Rp24 million per annum was expected to help improve the welfare of workers.(*)
Editor: Aditia Maruli Radja
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