Jakarta – The Taxation Directorate General has seen tax revenues increase in the first half of 2019, triggered by the legislative and presidential elections on April 17.

Tax office spokesman Hestu Yoga Saksama said on Wednesday that retail sales growth of 9.1 percent in February would positively affect tax revenues.

"Of course, the growth of retail sales will correlate positively to the revenue from value-added taxes. But we have to wait for the report [on the tax revenues]," he said as quoted by kontan.co.id.

Bank Indonesia projected retail sales would grow in March, having estimated first quarter growth of 8.1 percent, 0.7 percent lower than the growth in the first quarter of 2018.

It was also higher than the growth in the fourth quarter of 2018, which was 4.7 percent.

Hestu said the tax revenue increase was trigged by spending by the General Elections Commission (KPU) and campaign spending by presidential candidates, political parties, as well as individual legislative candidates nationwide.

The government allocated more than RP 25 trillion (US$1.77 billion) to the KPU to organize the elections.

He stressed that the spending will push economic growth. "It is just like the Lebaran and year-end holidays," he added.

He said the impact of the elections on tax revenue would be assessed at the end of April. (bbn)

Source: https://www.thejakartapost.com/news/2019/04/11/elections-push-revenues-up-tax-office.html