Low Tax Indicates Slow Economy
2 April 2015 13:18 WIB
TEMPO.CO, Jakarta - Low tax revenue in the first quarter of 2015 is considered an early sign of slowing economy. As of March 30, the Directorate General of Tax reported that tax revenues only reached Rp170 trillion, or 13.6 percent of this year's some Rp1.24 quadrillion target. In the same period last year, tax revenues had reached 21.2 percent of the year's target.
Samuel Aset Management's economist Lana Soelistianingsih said poor tax revenue performance in the first quarter was due to an economic slowdown that led to sales declines in some industrial sectors, causing a decrease in value added tax (VAT).
"The sales decline is also driven by the rupiah depreciation against the US dollar since the end of last year," said Lana.
The condition is worsened by the drop in global crude prices that prompted contractors to hold back from exploring and exploiting, causing tax income from the oil and gas sector to sag.
Based on the current situation, Lana projected that this year's actual tax revenue will only reach Rp1 quadrillion to Rp1.1 quadrillion, assuming that the national economic growth is stable at 5.3 percent.
Tax director general Sigit Prio Pramudito admitted that Q1's tax revenue is lower than expected. He said the DG will continue to make efforts to achieve this year's tax revenue target.
ROBBY IRFANY | ANDI RUSLI