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Tax revenue projected to reach only 88.9 percent of annual target
Slow economic growth cited as reason for slow growth in tax revenue collection.
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The Taxation Directorate General building in Jakarta. (kontan.co.id/File)
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eferring to slow growth in tax revenue collection in the first four months of 2019, the Center for Indonesia Taxation Analysis (CITA) projects the country will collect Rp 1.40 quadrillion (US$ 96.93 billion) or about 88.9 percent of the Rp 1.56 quadrillion target this year.
As of April, the government collected Rp 387 trillion in tax revenue, 1 percent growth from last year.
CITA executive director Yustinus Prastowo cited slow economic growth as the reason for the slow growth in tax revenue collection.
“The slow growth both in exports and imports hampered tax revenue collection,” he said on Saturday as reported by kontan.co.id.
He explained that nearly all components of tax revenue showed poor performance. He gave an example that income tax (PPh) from non-oil and gas, the main contributor to the state revenue, only grew 4.04 percent, compared to 10.34 percent growth in the same period, last year.
It was particularly triggered by slow growth in the manufacturing sector. The manufacturing industry, however, was the largest contributer to revenue in the non-oil and gas sector.
If tax revenue collection continues to be slow, the budget deficit will widen this year, said Yustinus. (bbn)
