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Tax Revenue Contracted 4,97 % in February

Thursday, 19 March 2020

Tax Revenue Contracted 4,97 % in February

JAKARTA. Amid the issue of the spread of the Corona Virus Disease 2019 (Covid-19), the government announced the realization of the 2020 State Budget (Anggaran Pendapatan Belanja Negara/APBN).

Until the end of February, APBN 2020 recorded a deficit amounts to IDR 62,8 billion or equivalent to 0.37% of the Gross Domestic Product (GDP), with a state revenue of IDR. 216.6 trillion and state expenditure of IDR. 279.41 trillion.

Based on APBN realization data released by the government, the performance of tax revenue is still very low. This condition has a significant impact on the overall state revenue.

The realization of tax revenue was recorded to have contracted by -4.97% (year on year) with a nominal value IDR 152.92%. However, this condition is better compared to the realization of January 2020 which experienced a deeper contraction of -6.86%.

The biggest contraction occurred in the type of oil and gas Income Tax (Pajak Penghasilan/PPh Migas) in the amount of -36.83% with a nominal value of IDR 6.64 trillion. While Non-oil and gas Income Tax (PPh nonmigas) experienced a contraction of -3.04% or valued at IDR 88.98 trillion.

Despite lower contraction rates, non-oil and gas income tax has the highest level of contribution to total tax revenue. Meanwhile, Value Added Tax (VAT/Pajak Pertambahan Nilai/PPN), which had the second largest contribution, contracted -2.67% with a nominal value of IDR 55.95 trillion. (see table)


Description  APBN 2020 (IDR Trillion)Realization (IDR Trillion)Growth (%)Accession (%)
PPh929,995,62-6,5210,28
- Non Migas 872,4888,98-3,04

10,20

- Migas 57,436,64-36,8311,57
PPN dan PPnBM685,8755,95-2,678,16
PBB18,860,3094,991,58
Other Taxes7,931,055,6713,19
Total 1.642,57152,92-4,979,31

Source : APBN Kita 

PPN : Value Added Tax (VAT)

PPh : Income Tax

PPnBM : Sales Tax on Luxury Goods 

PBB : Land and Building Tax

If viewed based on sectoral, only the manufacturing sector is able to grow positively by 4.9% (year on year). This condition is better than the same period of 2019 years, which was recorded to grow negative-11.4%.

While other sectors experienced negative growth, such as the trade sector which contracted -2.3%, the financial services and insurance -5.3%, construction and real estate -4.5%, mining had the largest contraction at -20.8% , and the transportation and warehousing sector -2.7%. (see table)


Types of industry Realization (IDR Trillion)Growth (%)Contribution (%)
Processing industry 38,814,925,9
Trade35,30-2,323,6
Financial and Insurance Services11,8-4,57,5
Mining 4,5-20,83,0
Transportation and warehousing8,182,75,5
In general, the performance of the tax revenue is influenced by global economic conditions and declining international trade. The disruption of export-import activities has suppressed the revenue of taxes on imports. On the other hand, economic slowdown that occurs also impact on the revenue of Income tax article 25/29 of corporate which also contracted 19.57%.

The government recognizes, the challenges faced this year will become increasingly difficult especially with the Covid-19 outbreak that has not yet subsided. Related to this, the government claims to focus on preventing the spread of the deadly virus with various tax incentives, until conditions recovered and economic activity returns to stable.









                                                                                                                                         


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