The government benefits from skyrocketing commodity prices with skyrocketing tax revenues. Finance Minister Mrs. Sri Mulyani reported that skyrocketing commodity prices contributed Rp 174.8 trillion to tax revenues for seven months this year. Total tax revenues up to July reached Rp 1,028.5 trillion. The nominal is equivalent to 69.3% of this year’s target. This revenue was also recorded to grow 58.8% from the same period last year, supported by one of them is the skyrocketing commodity prices. “Last year’s commodity prices have also increased which contributed Rp 15.6 trillion alone and this year commodity prices contributed even more, namely Rp 174.8 trillion,” said Minister of Finance Mrs. Sri Mulyani at a press conference on the State Budget KiTA August, Thursday 11/8 /2022.
The provision of commodity prices can be seen from the realization of tax revenues from the mining sector which grew by 282.1 percent compared to last year. Specifically for July alone, mining sector tax payments jumped 120% compared to last year.
Minister of Finance, Mrs. Sri Mulyani, in a statement at the State Palace earlier this week, said that skyrocketing commodity prices will contribute Rp. 279 trillion to this year’s tax revenue. Thus, the realization until July has reached 63% of the estimate. However, he also conveyed a note, The advantage of commodity prices on tax revenues may not be high again next year. The Directorate General of Taxes (DGT) some time ago also said that the trend of tax revenues may be sloping in the second semester as commodity prices begin to moderate. “Therefore, what needs to be worried about and monitored in detail is the contribution of this commodity to tax revenues,” said Finance Minister Mrs. Sri Mulyani.
In addition to the soaring commodity prices, the 59.1% growth in tax revenue was also contributed by the Voluntary Disclosure Program (VDP) aka Tax Amnesty volume II. Through this program, the government receives a final income tax of Rp 61 trillion. However, this is a momentum that will not be repeated because it has ended since June 30 last.
In addition, expansive economic growth has also driven high tax revenues throughout the seven months of this year. Indonesia’s economy grew 5.01% in the first quarter and grew stronger at 5.44% in the second quarter. Furthermore, the tax revenue base in the January-July 2021 period is indeed small. The reason is that last year there were still many tax incentives that hardened tax revenues. “This year, with good economic recovery, various incentives have started to phase out, so this is an unusually high tax revenue,” said the Minister of Finance, Mrs. Sri Mulyani. much of it comes from non-oil and gas PPh as well as VAT and PPnBM. Revenue from non-oil and gas PPh reached Rp 595 trillion, VAT and PPnBM revenues amounted to Rp 377.6 trillion. Other references include oil and gas PPh of Rp 49.2 trillion and PBB and other taxes of Rp 6.6 trillion.