The 2018 Asian Games event is projected to have a positive impact on state revenues. Director of Potential, Compliance and Revenues of the Ministry of Finance’s Directorate General of Taxes Yon Arsal said that the impact would be felt by various types of taxes.
“At this time, there is no calculation because the event is still ongoing. The ongoing impact on revenues, for example, is towards Value Added Tax (PPN),” said Yon when contacted by Republika.co.id, Friday (24/8).
In addition to having a positive impact on VAT revenues, the biggest sports party in the Asia continent could also have a positive impact on Income Tax (PPh) revenues. Yon explained, the increase in tax revenue will reflect on the report of Income Tax Return from all parties involved and those who receive additional income or profits from the 2018 Asian Games.
“For example, in preparing the 2018 Asian Games a lot of project development was carried out, including the construction of stadiums, there are employees who are employed. This means that there is an increase in Article 21 Income Tax. Subsequently, the company also receives increase in profits, therefore there will be an increase in Articles 25 or 29 income tax,” Yon said.
The same thing was also conveyed by The Coordinating Deputy for Macro Economy and Finance of the Coordinating Ministry of Economy Iskandar Simorangkir. In addition to having a positive impact on state revenues, the 2018 Asian Games will also drive up the economic growth.
He commented, the Asian Games could increase the rate of economic growth by 0.01 to 0.03 percent in 2018. “But the most important thing from the 2018 Asian Games is that unemployment is decreasing, the public or business actors’s income are increasing, and other multiplier impacts,” said Iskandar.