VIVAnews – Tax revenue is predicted to decline from the revised tax target of Rp 661.8 trillion (US$58.95 billion). It was expected in the end of 2009 the tax revenue would reach Rp 639.4 trillion (US$56.92 billion). The highest cutback comes from manufacturing industry.
”It is based on observation of the revenue that has been performed until March 2009,” said the Finance Minister Sri Mulyani Indrawati after a restricted meeting in the presidential office in Jakarta on Monday, April 13.
Considering the tax revenue until March 2009, the state revenue is projected will decline in the end of 2009, meanwhile the state expenditure will remain the same. Therefore, the government is going to boost the ministry/state agencies expenditure of becoming the the supportive factor for economic activities, mainly for focusing on the activity that can reduce unemployment and poverty.
Tax revenue was previously predicted to reach Rp 725.8 trillion (US$65.83 billion), but later revised to Rp 661.8 trillion (US$60.22 billion). The revision was an impact of the global economic slowdown, export-import and investment downturn which cut tax revenue. While March 2009 tax revenue was Rp 133.2 trillion (US$11.87 billion) or 20.1 percent of 2009 tax revenue revision.
She said the manufacturing industry has the lowest tax revenue. This sector only contributed Rp 13 trillion (US$1.16 billion) until the end of March 2009, lower Rp 3.7 trillion (US$329.38 million) than March 2008 of Rp 16.7 trillion (US$1.49 billion). While, other sectors such as trade, hotel and restaurant, transportation and communication are still relatively stable.
Sri Mulyani mentioned that the income tax in the manufacturing industry had decreased from Rp 17.8 trillion (US$1.58 billion) in 2008 to Rp 15.3 trillion (US$1.36 billion) in 2009. Whereas mining sector also declined along with the decrease of commodity price from Rp 8 trillion (US$712.53 million) in 2008 to Rp 6.5 trillion (US$578.93 million) in the end March 2009.
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Translated by: Ariyantri E. Tarman
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