State Revenue Realization from Luxury Goods Sales Tax (PPnBM) Plunged 45.18% in 2020

Government revenue from luxury goods sales tax (PPnBM) plummeted during the Covid-19 coronavirus pandemic. Based on the Central Government Financial Report, state revenue from PPnBM amounted to Rp 8.56 trillion in 2020, a 45.18% decrease compared to the previous year, which reached Rp 15.6 trillion.

The details show that domestic PPnBM revenue fell by 48.8% to Rp 5.55 trillion. Import PPnBM decreased by 36.5% to Rp 3 trillion. Other PPnBM revenue plunged by 97.56% to Rp 809 million.

The decline in domestic PPnBM state revenue was triggered by a decrease in motor vehicle sales. This is in line with weakening consumer spending and disruptions to national economic activity as a result of the Covid-19 pandemic. For information, domestic PPnBM revenue from the processing industry contributed 97.15%.

Similarly, import PPnBM revenue also decreased along with the decline in imports of completely built-up (CBU) motor vehicles. Sectorally, the automotive trade contributed 72.92% to import PPnBM revenue in 2020.

Government revenue from VAT and PPnBM fell by 15% to Rp 450.33 trillion last year. PPnBM's contribution itself only reached 1.9% in 2020, lower than 2.94% in 2019.