Tax revenues are slowing down, Ministry of Finance: Income tax is still good

TAX - JAKARTA. The government admits there is a slowdown in tax revenues. This slowdown was driven by a decline in tax revenues from several sectors.

In February 2019, revenues from the manufacturing industry sector, for example, were only Rp. 36.87 trillion, down 11.3% from last year.

Data from the Ministry of Finance (Ministry of Finance) shows that the most profound decline occurred in this sector. Two other industries that fell were construction and real estate.

The industrial sector that experienced a slowdown in growth was trade sector. Tax revenue from this sector was Rp. 36.03 trillion, only grew 1.7% compared to last year of 32.5%.

On the other hand, the financial services, transportation, warehousing, and mining sectors showed good growth. Financial services grew 27.5% (Rp. 21.56 trillion), transportation and warehousing grew 27.6% (Rp. 8.30 trillion), and mining grew 30.7% (Rp. 5.30 trillion).

The Ministry of Finance concluded that the decline in tax revenues in some of these sectors was due to the policy of accelerating the value added tax (PPN) restitution.

Suahazil Nazara, Head of the Fiscal Policy Agency (BKF) has not been worried. He saw that there were still positive sectors and types of tax revenues.

In terms of tax type, income from income tax (PPh) still shows good performance. The government claims this condition is an indication that the economy is still in good condition.

"There has been a decline, but if the income tax is still good, it's okay, we just balance it," Suahazil explained at the Economic Coordinating Ministry's Office on Tuesday (3/19).

The income tax that has increased include Article 21 Income Tax (15.7%). Finance Minister Sri Mulyani stressed that if PPH Article 21 had raised, the condition of the company was quite good; employee salary increases and expansion of employment. "This shows the economic conditions, unemployment has fallen," he explained.

Also, personal income tax grew 28.2%, and corporate income tax rose by 40.4%. Moreover, this March and April 2019 are the deadline for tax return reporting (SPT).

On the other hand, the government also hopes for the opportunity to increase coal prices which can boost non-tax revenues (PNBP).