What is Non-Tax State Revenue? Definition, Examples and Types

Think of government as a big restaurant. Apart from selling food (tax), this restaurant also has various other sources of income, for example from renting out parking areas, selling merchandise, or maybe even having a jukebox machine that guests can use for a fee. So, we can think of income from other sources as PNBP in government.

Understanding PNBP

Non-Tax State Revenue (PNBP) is a source of state revenue that comes from sources other than taxes. PNBP comes from service activities organized by the government or management of other state assets that do not come from taxes.

Non-Tax State Revenue (PNBP) in Indonesia is regulated in law. In particular, the main reference regarding PNBP is Law Number 1 of 2004 concerning State Treasury. However, it should be noted that there are many other regulations that also regulate PNBP depending on the type of PNBP and the agency that has authority over it.

If we compare it with other countries' income such as taxes The percentage of PNBP compared to state revenues from the tax sector can vary each year, depending on various factors, such as government policy, economic conditions, commodity prices on the global market, and others.

Example of PNBP source 

PNBP is the abbreviation for Non-Tax State Revenue. This means that this is money that the state receives, but not from taxes. For example:

Retribution: Payments charged for services or facilities provided by the government. For example, market levies, health service levies, and parking service levies. Imagine you go to a city park and are asked to pay the entrance ticket. That is an example of retribution.

Royalties: For example, the government owns land that is rich in oil. There are companies that want to dig up the oil and they have to pay the government. That's called royalty. Results from the management of separated state assets: Such as revenues from State-Owned Enterprises (BUMN) or Regional-Owned Enterprises (BUMD).

Receipts from the use of natural resources: Such as royalties from mining, fishing, or forestry.

Fines and administrative sanctions. Just like when you return a library book late and get fined. Or when you are ticketed by the police, if the ticket money goes into the state treasury it is called PNBP.

Revenues based on civil law, such as renting or buying and selling state-owned land and buildings.

Proceeds from the sale of state assets. Examples include selling state-owned tankers, selling concessions to entrepreneurs or selling other state-owned assets to other parties,

PNBP management must be carried out in accordance with applicable statutory provisions to ensure transparency, accountability and effectiveness in its use in the public interest.

Conclusion

To get actual data regarding the percentage of PNBP compared to tax revenue in a particular year, you need to refer to the Central Government Financial Report (LKPP) or official data sources from the Ministry of Finance of the Republic of Indonesia for the year in question.

However, in general, income from the tax sector usually dominates the APBN (State Revenue and Expenditure Budget) compared to PNBP. Revenue from taxes such as Income Tax (PPh), Value Added Tax (VAT), and other taxes usually make a larger contribution than PNBP.

Well, PNBP is important, you know, because the money the government gets from there can be used for various purposes, such as building infrastructure, education, health, and so on. So, apart from taxes, the government has other "side businesses" to generate income. Cool, right?