Thailand
Indonesia: Tax Revenue Increases in October
TEMPO.CO, Jakarta – The Directorate General of Tax of the Finance Ministry reports that tax revenue has increased by 25 percent in October compared to the previous month. September saw Rp84.7 trillion in tax revenue, whereas this month it has hit Rp105.87 trillion.
“Meaning that the growth is quite significant. Value added tax [PPN] grew 20 percent and income tax is also positive,” Tax DG official Yon Arsal told Antara news agency last week.
Coupled with September tax revenue, Yon said, the potential revenue may hit Rp876.58 trillion or 68.29 percent of the full year target of Rp1,283.6 trillion. As such, the Tax DG needs to collect Rp513 trillion more. The government is confident that the target will be met through the optimization of revenue stream.
Earlier, Yon reported that as of September 30, the government had collected Rp770.7 trillion in tax revenue or 60 percent of the target set in the revised 2017 state budget (APBNP). The tax revenues consisted of oil and gas tax (PPh migas) of Rp732.1 trillion or 59 percent of the revised 2017 state budget or registering negative growth of 4.7 percent (year-on-year). Tax revenue from the non-oil and gas sector (PPh nonmigas) registered negative growth of 12.32 percent (year-on-year) at Rp418 trillion or 56.3 percent of the target.
Value-added tax (PPN) and luxury tax (PPnBM) were 64.6 percent of the target or grew 13.70 percent (year-on-year) or Rp307.3 trillion.
Yon said that the decrease was caused by unrepeated revenues that from last year’s redemption fees in the tax amnesty program and income tax for purposes of revaluation of assets. There are also differences in the payments of land and building tax (PBB) and government-borne income tax in a significant amount. “The growth of non-oil and gas income tax outside of redemption fees and overall unrepeated revenue and the difference in payment period was 12.6 percent,” Yon said.
Bank Permata economist Josua Pardede said that as the national and global economy slows down, it would be difficult for the Tax DG to meet the full-year tax revenue target. Nevertheless, Pardede is optimistic that the total revenue would reach 85 percent at the end of the year.
Source: https://en.tempo.co/read/news/2017/10/30/056912750/Tax-Revenue-Increases-in-October