All projected incomes up, except those from fuel
All projected incomes up, except those from fuel
JAKARTA (JP): The draft state budget for the 1995-96 fiscal
year, which begins in April, projects that all elements of
domestic revenues will increase from the present fiscal year's
levels, except proceeds from sales of petroleum products.
The draft, which balances at Rp 78.02 trillion (US$35.5
billion), expects a 10.9 percent increase from domestic revenues
to 66.27 trillion, while the difference will be outweighed by
foreign loans.
Although domestic revenues are forecast to increase by 10.9
percent, proceeds from domestic sales of petroleum products are
expected to decline by 41.4 percent to Rp 1.48 trillion ($682
million).
The decrease results from a modest rise of the projected crude
oil price, to an average of $16.50 per barrel, from this fiscal
year's $16, while domestic fuel prices have remained the same
since January 1993.
The volume of domestic sales of petroleum products is forecast
to be around 42.97 million kiloliters.
Based on the average oil price of $16.50 per barrel and the
production of 1.52 million barrels per day of crude oil and
condensate, the government expects to gain Rp 9.81 trillion from
oil taxes and other levies, which indicates an increase of 3.2
percent over the 1994-95 budget.
From the gas sector, the government postulates to rake in Rp
3.46 trillion, an increase of 3.5 percent. The calculation is
based on annual gas exports of 1.30 trillion British thermal
units with an average price of $2.61 per million British thermal
units.
Non-oil sectors
The highest revenues from non-oil sectors are projected to
come from income tax with Rp 19.24 trillion, although it serves
only a 2.1 percent increase over this fiscal year.
The slight increase in income tax will result from the
introduction of the new tax law, which came into affect on Jan. 1
this year. The new income tax law lowers the range of the income
tax rates to 10 percent, 15 percent and 30 percent from 15
percent, 25 percent and 35 percent under the old income tax law.
The new tax law, which widens its coverage, is likely to allow
the government to expect a 25.8 percent increase in value added
tax to Rp 16.66 trillion in 1995-96.
The new property tax law, which sets the maximum untaxable
value of objects at Rp 8 million, is expected to help increase
government revenues from land and building tax by 18 percent to
Rp 1.92 trillion.
From export tax, the government expects a 170.7 percent
increase to Rp 44.4 billion on the consideration that exports of
taxable exports, such as crude palm oil, will increase
significantly.
From import duties the government targets itself to collect Rp
3.5 trillion, an increase of 2.9 percent, due to a projected
surge in imports in line with increasing foreign investment
activities.
Last year the government approved $23.7 billion in foreign
investments, as compared to $8.1 billion approved in 1993.
Proceeds from excises are expected to rise by 25.8 percent to
Rp 3.3 trillion, of which Rp 3.1 trillion is projected from
cigarette excises. The sharp increase is attributed to the rise
of local cigarette production and the better purchasing power of
the people.
The improving business activities are expected to increase the
government's revenues from sealing stamps and auction fees by
13.3 percent to Rp 319.3 billion.
The efficiency campaign targeted at state companies is
expected to increase their profits and thus boost the
government's revenues from non-tax levies by 51.2 percent to Rp
6.49 trillion.(rid)