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Tax revenues up 41.93% to Rp1.63 trillion: Finance Minister

Tempo - December 21, 2022

Antara, Jakarta – Tax revenues swelled 41.93 percent year on year to reach Rp1.63 trillion as of December 14, 2022, Finance Minister Sri Mulyani Indrawati informed on Tuesday.

This high increase was due to the good recovery of the domestic economy, rising commodity prices, and the implementation of tax reform through the Law on Harmonization of Tax Regulations (UU HPP).

"This tax revenue will be our capital to keep the state budget healthier so that it can protect the economy, protect society, and support Indonesia's development," she said at an online press conference on "Our State Budget December 2022," on Tuesday.

With this realization, tax revenues, as of December 14, reached 110.06 percent of the target of Rp1.48 trillion.

According to Indrawati, the realization of tax revenues consisted of non-oil and gas income tax (PPh) of Rp900 trillion or 120.2 percent of the target, as well as value-added tax (PPN) and sales tax on luxury goods (PPnBM) of Rp629.8 trillion or 98.6 percent of the target.

Then, Land and Building Tax (PBB) and other taxes were recorded at Rp29.2 trillion or 90.4 percent of the target. There was also oil and gas income tax of Rp75.4 trillion or 116.6 percent of the target.

Even though the growth is very significant, the minister said that the annual increase in tax revenue has tended to slide compared to previous months, especially starting November 2022, to below 50 percent (yoy).

"This increase will not be possible to continue high. So, we have to calibrate the tax revenue target, which is quite moderate in 2023," she said.

Thanks to significantly growing tax revenues, Indrawati said that state revenues managed to increase by 36.9 percent (yoy) to Rp2.47 trillion on December 14, 2022.

The increase was obtained from tax revenues of Rp1.92 trillion and non-tax state revenues (PNBP) of Rp551.1 trillion.

Apart from tax revenues, the increase was also seen in customs and excise, whose realization reached Rp293.1 trillion.

Source: https://en.tempo.co/read/1670583/tax-revenues-up-41-93-to-rp1-63-trillion-finance-ministe