The government has had to pay Rp 50.65 trillion (US$3.59 billion) in tax refunds in the first quarter of the year, a 47.87 percent increase from 2018, according to Taxation Director General Robert Pakpahan

The sharp rise has affected state revenue, which grew 1.8 percent year-on-year (yoy) to Rp 249 trillion in the January-March period. Last year’s yoy increase was recorded at 9.9 percent.

Pakpahan said this year’s figure was the highest the government has had to spend on tax refunds so far.

“In the same period last year, repayment grew 34.26 percent [from 2017],” he said as quoted by kontan.co.id.

However, he expects a slowdown in May and June with the hope of having an annual growth of 18 to 20 percent. In the past, tax refunds increased by about 10 percent.

“As growth reached 47.83 percent in the first three months, we need to slow it down in the coming months to maintain an annual growth of around 20 percent, so that we can increase our net state revenue,” he added. (bbn)