Economist Denies Sri Mulyani's Statement That Taxes Will Exceed Target: Instead, It Will Shortfall IDR 150 Trillion

JAKARTA - Economic observer at the Center of Reform on Economics (CORE), Indonesia Yusuf Rendy Manilet, said that if the Implementation of Emergency Community Activity Restrictions (PPKM) had the opportunity to widen the distance between the realization of tax revenue and the target set (shortfall) this year.

This statement also denies the projection of the Minister of Finance, Sri Mulyani, who revealed that several state revenue posts in the 2021 State Budget would exceed the budget ceiling that had been prepared previously.

"I think it is precise with the pandemic and the implementation of an emergency PPKM that the potential for tax shortfalls will become even greater", she said when contacted by VOI  Tuesday, July 13.

According to Rendy, the simple analogy of Emergency PPKM means limiting mobility. This means that productive activities, especially the economy, will inevitably slope along with the reduction in community activities.

"The simple picture is that when economic activity is limited, the potential to collect taxes is less", he said.

In fact, the economist, who is noted to have worked as a banker, estimates that the difference in tax revenues this year could reach hundreds of trillions.

"My calculations project that the tax shortfall could widen from IDR 100 trillion to IDR 150 trillion", he said.

For information, Minister of Finance Sri Mulyani had said that three elements of state revenue, namely taxes, customs and excise, and Non-Tax State Revenue (PNBP) could penetrate the target set by the government for the 2021 period.

This was stated by the Minister of Finance when holding a virtual working meeting with the Indonesia v of Budgetary Body (Banggar) on Monday, July 12.

In detail, this year's tax is believed to reach the target of 101 percent or equivalent to IDR 1,760.7 trillion, higher than the benchmark in the 2021 State Budget which is IDR 1,743.6 trillion.

Then, customs and excise amounted to IDR 224.1 trillion or 104 percent of the IDR 215 trillion ceilings. And the last one is PNBP of IDR 357.7 trillion or 119 percent of the ceiling of IDR 343.8 trillion.