DGT Monitors Commodity Prices for The Revenue

JAKARTA. The Directorate General of Taxes (DGT) admits that they continue to monitor the movement of commodity prices, due to its large impact on tax revenues.

Until the end of August 2022, the realization of tax revenues from the mining sector grew by 233.8% year on year.

This growth rate is the highest compared to other sectors. DGT assesses that this is due to the trend of rising commodity prices, particularly mining commodities.

"Commodity prices are formed from international based economic activities," said Director General of Taxes Suryo Utomo, Wednesday (5/10) in Jakarta.

The contribution made by the commodity sector is 8.9% of the total tax revenue collected until 30 August 2022, which is IDR 1,171.8 trillion.

In detail, tax revenues from the mining sector consist of coal and lignite mining, metal ore mining, mining services, oil and gas, geothermal mining, and other mining (see table).

Not Only Mining Sector

However, Suryo also revealed that the increase in commodity prices also had an impact on revenue on Income Tax (PPh) for corporate taxpayers (WP).

Until the end of August 2022, the realization of corporate income tax revenues was recorded to have increased by 131.5% from the same period last year, with a contribution reaching 21.7% of total revenues.

In general, the largest contribution to tax revenue comes from the manufacturing sector, which is 29.7% of total revenue. After that, the trade sector grew by 66.3% with a contribution of 23.7%.

Meanwhile, the third largest contributor was the financial services and insurance sector with a share of 10.9%.