Customs, excise revenue may fall in 2009 on lower trade

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Thu, 12/18/2008 10:56 AM  |  Business

The revenue of the customs and excise office is forecast to fall some 30 percent short of the Rp 78 trillion target (around US$6.95 billion) set in the 2009 state budget as slower exports and imports will be affected by the global downturn, tending to slash collection of import duties.

Anwar Suprijadi, director general of customs and excise at the Finance Ministry, said Wednesday that, while excise duty might still reach budget expectations, imports next year would drop, thus reducing revenue from export and import duties.

"There may not be any problem with excise duty. But customs will drop about 30 percent as import duty decreases," he said.

Anwar said the government, for 2009, initially expected to obtain Rp 45.5 trillion in excise duties, Rp 19.2 trillion in import duties and Rp 9.3 trillion in export duties.

However, the global economic slowdown has affected the revenue of customs and excise office, he said. "After the global financial crisis, the conditions have changed. The 2009 budget was designed before the crisis."

Director general of taxation Darmin Nasution said earlier businesses had cut imports as they expected a slowdown in the economy next year. This had reduced state revenues from value added tax since October.

For this year however, things are looking good for the customs and excise office.

As of Dec. 13, revenue from the customs and excise office was 15 percent higher than the amount set in the revised 2008 state budget, Anwar said.

Import duties had reached Rp 21.5 trillion, higher than the Rp 15.8 trillion expected; export duties were Rp 13.5 trillion, higher than the Rp 11.2 trillion projected; and excise duties had reached Rp 48.6 trillion, above the Rp 45.7 trillion originally projected.

"All of these expectations have been materialized," he said.

Anwar also said the directorate general of taxation would continue to fight illegal importers. "The number of hit and run importers have decreased."

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