2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

TAXATION COLLECTION CONTINUES TO WELL PERFORMED Major sources of tax posted positive growth up to November 2021 TAX REVENUE GROWTH BY TYPES (%) Jan-Nov 2019 I Jan-Nov 2020 60 36.6 40 27.0 21.7 16.6 20 10.6 34.6 11.6 3.4 1.75.0 6.7 1.2 0 -20 -5.2 -1.5 -40 -60 -47.9 Income Tax Art Income Tax Art Personal Income 21 22 (Imported Goods) Tax -5.36.9 -36.1 Corporate Income Tax -8.51.0 -1.8 -9.7 -7.9 -19.4 • Income Tax Art Final Income Tax Domestic VAT 26 Import VAT TAX REVENUE GROWTH BY SECTORS (%) 28.3 40 16.9 7.2 2.4 86220276 -3.3 -40 -19.1 -19.5 0.3 -2.4 -1.4 -11.2 -19.7 16.5 59.1 -5.9 -21.0 16.4 Manufacturing Trade Financial Services & Construction & Real Insurance Estate -43.5 Transportation & Warehousing Mining Source: Ministry of Finance . • • As the Covid-19 pandemic has caused a slowdown in economic activities, the government provided fiscal stimulus to protect business through tax cut and incentive, which led to a deep fall in 2020 tax collection. Up to Nov 2021, major taxes has started to show a positive performance and has been consistent with economic recovery trend. Tax receipt booked growth of 17.0% in November (ytd), exceeded the target of 14.7% in the 2021 state budget. The income tax, especially corporate income tax, and tax form import activities grew strongly. Tax collection of most sectors hike, align with the recovering performance of those sectors. Even though few sectors still contracted, the realization up to November was way better compared to in early 2021. 65
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