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)