Tax Revenue As of April is Negative 3,09%

JAKARTA. The realization of tax revenue as of 30 April 2020 was recorded at IDR 376.67 trillion or 30.04% of the 2020 State Budget (APBN) target. This realization was also lower than the tax revenues in the same period of 2019, or year on year (yoy) of-3.09%. 

With this record, the contraction in tax revenue was getting bigger compared to the realization in March 2020 which grew -2.47%. The government considers that income tax (PPh) revenue contribute the most to this shortfall with a growth of -5.69% yoy. Especially for the type of oil and gas income tax ( PPh Migas) which grew -32.3%, while non-oil and gas income tax grew only -3.17%.

There are several things that cause non-oil and gas income tax to experience a lower contraction than oil and gas income tax. First, there is an increase in dividend payments that encourage the revenue of Income Tax Article (ITA) 26. Second, an increase in final income tax payment.Third, the trend of restitution payments is starting to slow down thereby reducing the pressure for the revenue of ITA 26.

Meanwhile the revenue of Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM) could still grow positively by 1.88% yoy. Then the realization of the Land and Building Tax (PBB) and other taxes grew 4.9% yoy.

Effects of The Economic Slowdown

The realization of tax revenue this time is also inseparable from the impact of the economic slowdown in the first quarter of 2020. As stated by the Central Statistics Agency (BPS), Indonesia's economic growth recorded only grew 2.97% in the first quarter or slowed down compared to the first quarter of 2019 which grew 5.07% and the fourth quarter of 2019 which amounted to 4.97%.

This slowdown had an impact on corporate tax payments or corporate taxpayers, which until April recorded a contraction of 15.23% yoy.

State Budget Deficit is Maintained

Even though the tax revenue has contracted, the overall state budget 2020 posture is still maintained at a safe level.This can be seen from the 2020 state budget deficit that recorded at 0.44% of the Gross Domestic Product (GDP) or far lower than the deficit limit set in the 2020 revised state budget of 5.07%.

The total realization of state revenue until April was recorded at IDR 549.51 trillion and state expenditure of IDR 623.98 trillion. With this condition, the level of primary balance was positively recorded at IDR 74.46 trillion, even though the government set a target of primary balance in the 2020 revised state budget of -IDR 517.78 trillion.