Tax and customs revenues are only half of targets

JAKARTA. As of 27 September 2016, government just collected a half of 2016 State Budget target for tax and customs revenues.

Data from Directorate General of Customs at Ministry of Finance show that as of 27 September 2016, government just collected Rp 100.93 trillion of customs revenues, or only 54.12% of Rp 186.51 trillion of 2016 Revised State Budget target.

This number was much lower than the amount of customs revenues collected in September 2015. As of 30 September 2015, government had collected Rp 114.5 trillion of customs revenues. In other words, government has to collect another Rp 13.57 trillion in three days to equalize the amount of custom revenues in 2015.

However, government is unlikely to meet the expectation. According to Director of Revenue and Regulation on Customs and Duty Sugeng Aprianto, within three days government can only collect Rp 1.6 trillion of additional revenues.

As of 27 September 2016, the amount of Rp 76.26 trillion of excise revenues contributed the most to Rp 100.93 trillion of customs revenues, while import duty and export duty contributed Rp 22.49 trillion and Rp 2.18 trillion to the total customs revenues, respectively.

According to Sugeng, tobacco products’ excise is the major contributor to the total of excise revenues. As of 27 September 2016, the tobacco products’ excise amounted to Rp 72.6 trillion, or lower than Rp 73 trillion of tobacco’s excise during the same period in 2015.

According to Sugeng, cigarette excise revenues tend to drop due to the decrease in cigarette productions in the last ten years. During the period, cigarette production in average dropped by 0.28% per year.

Number of cigarette banderoles ordered by cigarette producers within the last three years shows that cigarette production growth stood at 0.2%, or relatively stagnant.

Sugeng suggested that the decrease in cigarette production was caused by the intensive law enforcement, as well as the lower demand for cigarette.

The lack of customs revenues will deteriorate state budget, because as of 25 September 2016 government just collected Rp 729.7 trillion of tax revenues, or only 52% of Rp 1,355.2 trillion of 2016 Revised State Budget target on tax revenues.

Director General of Taxation Ken Dwijugiasteadi said that the realization of tax revenues has included tax amnesty revenues, as well as Rp 705 trillion of non-oil and gas revenues.

(Muhammad Farid/Translator)