JAKARTA. The Government and the Budget Committee (Banggar) of the House of Representatives (DPR) have agreed on a tax revenue target for 2022 of IDR 1,265 trillion, which increases 2.8% from this year's tax target.
Quoting Bisnis.com, the tax revenue target in 2022 consists of oil and gas income tax (PPh) of IDR 47.31 trillion, non-oil and gas income tax of IDR 633.5 trillion, as well as Value Added Tax (VAT) and Sales Tax on Luxury Goods (STLG) of IDR 554.3 trillion.
The agreement was made in a working meeting between the government, the House of Representatives and Bank Indonesia (BI) in the context of discussing the Draft Bill on the 2022 State Budget, on Tuesday (28/9).
Furthermore, the results of the decision will be discussed in the house of representatives' plenary meeting forum, to be approved as a Bill on 2022 State Budget.
In addition to an agreement on the tax target, the house of representatives and the government also agreed on a target of customs and excise revenue in 2022 of IDR 245 trillion, consisting of excise income of IDR 203.92 trillion, import duties of IDR 35.16 trillion and export duties of IDR 5.91 trillion. So that the total tax revenue targeted in 2022 amounted to IDR 1,510 trillion.
The State Budget Deficit Shrinks
While overall, the 2022 state budget deficit is set at IDR 862.02 trillion or 4.85% of Gross Domestic Product (GDP).
Citing kontan.co.id, the deficit level was lower than the 2021 state budget, which amounted to IDR 1,006.38 trillion or 5.7% of GDP.
The deficit occurred because the overall state revenue target was IDR 1,846.14 trillion, while state spending was set at IDR 1,714 trillion, consisting of central government spending of IDR 1,943.74 trillion as well as transfers to regions and village funds (TKDD) of IDR 770.41 trillion.