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View all search resultsTax revenue down 10% yoy in May amid payment shifts, policy changes
Mirroring a fall in tax collection, state revenue also declined to Rp 995.3 trillion (US$61 billion) in May, down by 11 percent from Rp 1.1 quadrillion in the same period last year.
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Facing declines: Finance Minister Sri Mulyani Indrawati delivers her speech on Feb. 11 during the Mandiri Investment Forum in Jakarta. (Reuters/Willy Kurniawan)
T
ax revenue in the first five months of this year fell more than 10 percent year-on-year (yoy), largely due to the lingering impact of policy changes that dampened tax collection in early this year as well as delayed tax payments from some sectors.
Third Deputy Finance Minister Anggito Abimanyu reported that tax collection between January and May dropped to Rp 683.3 trillion (US$41.8 billion) from Rp 760.4 trillion during the same period last year.
He pointed out that revenue was still weighed down by adjustments to the effective tax rate policy, which triggered a wave of overpayment claims and suppressed income tax receipts in the first two months.
Income tax in May alone also came in lower than in the same month last year, as bonus payouts for employees in the financial sector were pushed back by a month, according to Anggito.
“There’s no fundamental problem here. This is caused by the shift in payment timing from May to June,” he assured at a press conference on Tuesday.
VAT payments saw a similar decline, which Anggito attributed to delayed payments from the oil and gas sector, typically made in May but now expected in June. He expressed confidence that the numbers would normalize next month.
Nontax revenue slumped 25 percent yoy in the first five months of this year, totaling just Rp 188.7 trillion. Minister Anggito attributed the drop to lower oil and gas lifting and a decline in the Indonesian Crude Price (ICP) compared with the same period last year.
