Indonesian Economy Improves, Tax Revenues increase to 12%

The Directorate General of Taxes at the Finance Ministry said tax revenues grew 12 percent in January 2018. The recovery conditions, one of which is sustained by the improvement of the Indonesian economy.

“Reception grew 12 percent in January 2018. So that’s pretty good, hopefully next month (February) is still up,” said Director General (Director General) of Tax, Robert Pakpahan when met at the Parliament Building, Jakarta, Monday (12/2 / 2018).

Director of Tax Benefits, Compliance, and Tax Revenue, Yon Arsal added that tax revenue grew 12 percent in double-digit growth in double-digit Income Tax (PPh) and Value Added Tax (VAT) in January 2018 compared to the same period of 2017.

“PPh is growing double digits, VAT 10 percent, imports are good, so it is quite optimistic that compared to the same period last year (January 2017) about 5 percent, we are starting points well compared to last year,” he explained.

To note, tax revenue in January 2017 was recorded at Rp 69.9 trillion. With the growth of 12 percent tax revenue at the beginning of this year, the realization is around Rp 78.29 trillion in January 2018.

“That means the momentum of economic growth that last year has been happening now and we are still guarding.” Last year it was December or until the last quarter is good, it is still from the previous day, the momentum is maintained, “said Yon.

Actual tax revenues of PPh and VAT types pushed up, Yon admitted due to an increase in the amount of savings balances. “Actually PPh and VAT, but the direct impact of income tax, meaning that the amount of savings balance can be seen, but VAT can also,” he said.

According to Yon, one percent of Indonesia’s economic growth, then its impact will raise one percent growth of tax revenues.

“But the tax is the deciding factor, that is economic and effort or effort, the effort we do, improve compliance and supervision,” he said.

Furthermore, Yon said, with the realization of economic growth in 2017 of 5.07 percent and inflation 3.6 percent, tax revenue should grow only 8 percent. Then the growth was out of the tax amnesty, and it still grows 15 percent.

“It means that there are also effects of improvements in administration, supervision, try VAT is one of them because we are intensively applying e-invoices.This is already more neat supervision,” In other words, Yon asserted no decrease in consumption and purchasing power community. “If there is a question the household consumption is down, but this is up, it means because there is an administrative repair there,” he explained.

“This is the factor that causes VAT to grow beyond the normal economic basis, one of which is e-invoice because of the administration, there is also an increase due to tax amnesty,” said Yon.


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