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Tax Revenue Target of 2021 is Set to Grow 5.8%

Wednesday, 19 August 2020

Tax Revenue Target of 2021 is Set to Grow 5.8%

JAKARTA.The government is targeting tax revenue in 2021 of IDR 1,268.8 trillion, or a growth of 5.8% from the outlook of 2020 tax revenue. This was conveyed by the government in the financial note of the 2021 State Revenue and Expenditure Budget Draft (RAPBN).

The government is optimistic that tax revenue will return to positive growth due to improved economic activity, so that both income tax (PPh) and Value Added Tax (VAT) revenues will increase.

The income tax revenue target is set to grow 3.2% from the 2020 revenue outlook to IDR 699.9 trillion. Meanwhile, VAT revenue is targeted to grow 7.6% from the outlook for 2020 revenue to IDR 546.1 trillion. (see table)

Tax Revenue Target of 2021
Tax Revenue Target of 2021
Description Revenue Target
Oil and gas income tax ( PPh Migas) IDR 41,17 triliun
Non oil and gas income tax ( PPh Nonmigas) IDR 658,70 triliun
VAT and Sales Tax on Luxury Goods (PPnBM) IDR 546,09 triliun
Land and Building Tax (PBB) IDR 14,83 triliun
Other taxes IDR 7,71 triliun
TOTAL IDR 1.268,8 triliun

 

Tax Incentive Factor

The growth in tax revenue is also inseparable from the government's efforts to continue providing fiscal stimulus to economic activities, one of which is tax incentives. The stimulus will be given more selectively and measurably to assist taxpayers liquidity.

Some of the tax incentives that will be provided include facilities for accelerating preliminary tax return or VAT refund.  The goal is to help the company's cash flow in order to carry out business activities.

Second, the Income Tax Article (ITA) 22 on import incentive is to support the need for industrial raw materials. Especially for the business sector that is still affected by Corona Virus Disease 2019 (Covid-19).

Third, taxes are borne by the government to support the competitiveness of certain sectors. Fourth, tax holiday and tax allowance facilities to encourage investment activities in Indonesia as well as create jobs and accelerate regional growth.
 



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