Tax Revenue Reaches 110.06 Percent

PR Office of Ministry of Finance

Until 14 December 2022, tax income reached up to Rp1,634.4 trillion or 110.06 percent of the target stipulated in Presidential Regulation Number 98 of 2022, amounting to Rp1,485 trillion.

The tax income grew 41.93 percent compared to that of last year amounting to Rp 1,151.5 trillion.

“This is an extremely high rise and certainly it is due to a good economic growth, good economic recovery, increasing commodities, and also reform of the legislation of Law of Tax Regulation Harmonization,” Minister of Finance Sri Mulyani said as cited in Ministry of Finance’s official website, Tuesday (12/20).

The Minister of Finance explained that the cumulative net growth of all kinds of taxes was dominantly positive describing the activities of economic actors.

Meanwhile, the income tax (PPh 21) that grew up to 19.58 percent showing the consistency of employees’ salary. The import income tax climbed to 89.14 percent indicating that the activities which support manufacture industry by importing various raw materials and capital goods demonstrate a quite healthy activity.

On the other side, the personal income tax (PPh OP) had a contraction, while the income tax of organizations increased to 88.4 percent, meaning that the corporate performance in Indonesia which contributed 20.7 percent of the total tax revenue showing a positive performance of the tax paid to the State.

In the meantime, the tax derived from individuals or companies not domiciled in Indonesia (PPh 26) showed a growth of 9.39 percent and the final income tax (PPh) rose to 54.42 percent, especially the tax derived from land and building rent, as well as sale of shares.

On value-added tax (PPN), which describes added-value activity in the economic activities, the growth reached 23.4 percent in domestic PPN and 43.43 percent in import PPN.

Sri Mulyani mentioned about the sectoral-based tax performance, which also shows the economic recovery map in 2022.

The major contributor was manufacture industry or processing industry that grew 35.1 percent, while trade sector climbed to 44.9 percent, financial and insurance services grew 12.1 percent, and mining sector, which was having a boom in commodity, also surged to 135.3 percent.

Construction sector has not fully recovered yet, indicating a negative growth. Meanwhile, the sector that has recovered from the pandemic impact is transportation sector, showing a growth in income of 27.3 percent. Information and communication sector has significantly grown to 14.9 percent, and company services has grown to 20.5 percent.

“This highly significant increase will become our reserves to make the State Budget healthier, so the State Budget could protect the people and the economy, and continue to support the development of Indonesia,” Sri Mulyani remarked. (UN)(AW/EP)