MARKET DEVELOPMENT
Sri Mulyani Hopes Palm Oil Industry Contribution to State Revenue
Sri Mulyani Hopes Palm Oil Industry Contribution to State Revenue
03/02/2017 (Netralnews) - Finance Minister Sri Mulyani Indrawati hopes palm oil industry players consistently give contribution to state revenue via tax payments and non-tax revenues (PNBP).
"As the country's financial manager, I expect palm oil plantation activities could give contribution to tax revenue which is appropriate and correct," she said during Indonesian palm national week program, Thursday (2/2/2017).
Finance Minister, as quoted by Antara, said the palm oil industry has great contributions to the national economy, because the oil commodity exports reached 12 percent of national exports with a total production in 2016 reaching 31 million tons.
Contribution of oil exports reached $17.8 billion or IDR231.4 trillion with employment reaching 5.6 million people, which means that the palm oil industry is an important sector for the government to maintain its continuity.
However, the finance minister admitted declining tax revenues from the agricultural sector following the palm oil levy obligation which are managed by Palm Oil Plantation Fund Management Board. (BPDP-KS)
"Taxes from palm oil, showed declining trend from 2012, only in 2015 climbed again, but in 2016 down again or just 1.23 percent of total tax revenue. But the non-tax revenues increased, because there are funds managed BPDP," Sri Mulyani explained.
Still cited from the same page, Sri Mulyani said that with these favorable industry conditions, the activities in the private sector have been done with good governance and followed by adequate tax compliance among industry players.
Nonetheless, the palm oil industry players who did not comply with the reporting of assets and property in plantations for tax purposes are expected to partake in the tax amnesty program.
"There is still tax amnesty, look again at your financial statements and see if there are assets that have not been reported. Or else we will do the enforcement at a rate which is not low," Sri Mulyani said.
"As the country's financial manager, I expect palm oil plantation activities could give contribution to tax revenue which is appropriate and correct," she said during Indonesian palm national week program, Thursday (2/2/2017).
Finance Minister, as quoted by Antara, said the palm oil industry has great contributions to the national economy, because the oil commodity exports reached 12 percent of national exports with a total production in 2016 reaching 31 million tons.
Contribution of oil exports reached $17.8 billion or IDR231.4 trillion with employment reaching 5.6 million people, which means that the palm oil industry is an important sector for the government to maintain its continuity.
However, the finance minister admitted declining tax revenues from the agricultural sector following the palm oil levy obligation which are managed by Palm Oil Plantation Fund Management Board. (BPDP-KS)
"Taxes from palm oil, showed declining trend from 2012, only in 2015 climbed again, but in 2016 down again or just 1.23 percent of total tax revenue. But the non-tax revenues increased, because there are funds managed BPDP," Sri Mulyani explained.
Still cited from the same page, Sri Mulyani said that with these favorable industry conditions, the activities in the private sector have been done with good governance and followed by adequate tax compliance among industry players.
Nonetheless, the palm oil industry players who did not comply with the reporting of assets and property in plantations for tax purposes are expected to partake in the tax amnesty program.
"There is still tax amnesty, look again at your financial statements and see if there are assets that have not been reported. Or else we will do the enforcement at a rate which is not low," Sri Mulyani said.