Income tax yield nearly doubles initial target<\/p>\n
JAKARTA (JP): State revenue from income tax in the 1998\/1999
\nfiscal year ending in March is expected to reach Rp 49.71
\ntrillion (about US$5.8 billion), double the initial target of Rp
\n25.85 trillion.<\/p>\n
Minister of Finance Bambang Subianto attributed the increase
\nin tax revenue to high interest rates on time deposits and the
\nhealthy performance of the mining and agribusiness sectors.<\/p>\n
\"The higher than expected income tax receipts were partly due
\nto the high income tax payments from agribusiness and mining
\ncompanies, which mostly reported a windfall profit during the
\nfiscal year,\" the minister told the House of Representatives at a
\nplenary session to approve revisions of the 1998\/1999 state
\nbudget.<\/p>\n
Interest rates have hovered around 35 percent and 45 percent
\nper annum as the monetary authority tightened currency supply to
\nprevent a further fall in the rupiah.<\/p>\n
The government did not provide data on the tax revenue from
\nexports. But value added tax revenue declined slightly from Rp
\n28.94 trillion to Rp 28.4 trillion.<\/p>\n
The total state budget revenue was expected to reach Rp 215.13
\ntrillion, about 81.5 percent of the target due to lower receipts
\nfrom oil and gas exports. The total spending could be squeezed to
\nRp 215.59 trillion, or about 81.6 percent of the initial
\nestimate, but the budget would still suffer an estimated deficit
\nof Rp 456.7 billion.<\/p>\n
State income and spending were initially set at Rp 263.89
\ntrillion.<\/p>\n
Bambang said the declining trend in oil prices and improving
\nexchange rate of the rupiah against the dollar had affected the
\noil revenue target.<\/p>\n
On the spending side, the strengthening of the rupiah, the
\nrestructuring of government debt, and the lifting of government
\nsubsidies on certain commodities since September had sliced
\nroutine spending by some 14 percent, he said.<\/p>\n
The rupiah fluctuated between Rp 7,000 and Rp 9,000 against
\nthe dollar in the second semester of the fiscal year. The
\ngovernment's revenue projection was initially based on the
\nassumption that the rupiah would stand at Rp 10,600 to the
\ndollar. (rei)<\/p>",
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