KONTAN.CO.ID – JAKARTA. Tax revenue is still showing a weakening trend. Tax revenues up to April 2019 were recorded at IDR 387 trillion or 24.5% of the cap for the 2019 State Revenue and Expenditure Budget (APBN). This figure grew by 1%, slow when compared to April’s growth of 10.8%.
Minister of Finance Sri Mulyani explained that the deceleration was due to the policy of accelerating restitution. In addition, the deceleration occurred because the Indonesian economy was under pressure, the calculation of tax revenues without accelerating restitution (gross) also showed a deceleration in revenues.
“So we have seen signs of the economy experiencing a decline with tax revenues which have weakened in terms of growth,” explained Sri Mulyani during the KiTa State Budget press conference at the Djuanda I Building Ministry of Finance (MOF), Thursday (16/5).
Sri Mulyani explained that the current economic condition of Indonesia is getting external and internal pressure. External pressure was reflected in exports-imports which fell by 2.08% and 7.75% respectively. “The decline occurred because of weakening demand from important Indonesian markets and low commodity prices,” he explained.
This condition caused a weakening of domestic growth, which in the first quarter of 2019 only grew 5.07%. Reflected from a fairly wide trade balance deficit of US$ 2.5 billion and the current account deficit (CAD), reached US$ 7 billion, equivalent to 2.6% of gross domestic product (GDP).
This pressure is also reflected in tax revenues. Almost all components of tax revenue experience a deceleration in growth.
The realization income tax from oil and gas as of April 2019 is not good compared to the same period last year. As of April 2019 the realization of oil and gas income tax amounts to IDR 22.2 trillion, equivalent to 33.5% of the 2019 state budget, fell from last year’s 55.3% of the 2018 state budget. Although it still grew 22.2% compared to April 2018 realization.
“The revenue of income tax from oil and gas is lower because the prices is lower, the exchange rate is stronger and lifting is lower,” explained Sri.