Tax Revenue Returns to Normal Level, State Budget is in Surplus

JAKARTA. Realization of tax revenue until the end of June 2022 or throughout the first semester of 2022 was recorded at IDR 868.3 trillion, growing 55.7% compared to the same period in 2021.

The realization of this revenue is higher than the revenue before the Covid-19 pandemic occurred. In the first semester of 2019, the realization of tax revenue was recorded at only IDR 604.3 trillion.

So when compared to the first semester of 2019, revenue in the first semester of 2022 grew by 46.6%. This means that Indonesia's tax revenue in the first semester has returned to a normal level as before the Covid-19 pandemic.

Minister of Finance Sri Mulyani explained that in general the performance of tax revenue in the first semester of 2022 was supported by rising commodity prices, economic recovery and reduction of tax incentives.

This is reflected in the performance of tax revenues by type of tax and by the business sector.

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Based on the type of tax, it can be seen that Income Tax Article (ITA) 21 grew by 19% which illustrates that the salaries received by employees also increased.

"It means that workers get income and that is why taxes from employees also increase," said Sri Mulyani.

In addition, ITA 22 on imports also grew by 236.8 percent, because import activities have begun to increase, both imported raw materials and capital goods.

Meanwhile, the personal income tax revenue only grew 10.2% from last year.

Meanwhile, the personal income tax revenue only grew 10.2% from last year. Corporate income tax until the first semester of 2022 grew 136.2%, ITA 26 grew 18.2% and final income tax grew 81.4% which was driven by the Voluntary Disclosure Program (VDP).

Then the domestic Value Added Tax (VAT) recorded a growth of 81.4% which was triggered by an increase in domestic consumption. In addition, import VAT also grew by 40.3%, in line with the increase in import activity.

Dominated by Mining Sector

The same illustration can also be seen in the development of tax revenue by the business sector. Tax revenues from all business sectors recorded positive growth.

The highest growth occurred in tax revenues from the mining sector, which amounted to 286.8%. Then the second highest was the manufacturing sector, which grew 45.5% and was followed by the trade sector, which grew 62.8%.

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Sri Mulyani explained, that when viewed from the realization of its growth, the mining sector did dominate. "But if we look at the sectoral contribution, almost all sectors have experienced extraordinary recovery," she said.

Sri Mulyani expects that the increase in tax revenue in the first semester of 2022 may be sustained through the year's end.

The State Budget is in Surplus

In the 2022 State Budget (APBN), tax revenue is targeted at IDR 1,265 trillion, which was later revised through Presidential Regulation (Perpres) Number
98 of 2022 to IDR 1,485 trillion.

In general, Indonesia's state revenues, which include tax revenues, customs and excise revenues, non-tax state revenues (PNBP) and grants, reached IDR 1,317.2 trillion.

Meanwhile, the realization of government spending until the first semester was recorded at IDR 1,243.6 trillion. Therefore, the state budget posture in 2022 will experience a surplus of IDR 73.6 trillion or around 0.39% of the Gross Domestic Product (GDP).