Tax Ratio Next Year, The Government Gives An Explanation To The DPR

JAKARTA - The government through the Minister of Finance, Sri Mulyani, revealed that the tax ratio in 2023 will decrease compared to the 2022 period.

In her presentation to Commission XI of the House of Representatives (DPR), the Minister of Finance said that this year's tax ratio was 8.6 percent. Meanwhile, next year's projection is believed to be at the level of 8.2 percent.

"Our tax ratio has decreased due to existing economic conditions and is strongly determined by several programs that make the baseline incompetent, such as PPS (Voluntary Disclosure Program) or tax amnesty and also in terms of commodity price factors", she said, quoted on Tuesday, September 6.

The Minister of Finance explained that commodity prices were quite dominant in the last two years in line with the global increase in prices.

"We remember that 2019 commodity prices were low, then they were hit by the pandemic, causing prices to soar for two years. This is quite influential in terms of our tax ratio", she said.

The Minister of Finance added that this situation then made the government get the windfall revenue from the soaring price tag because Indonesia is one of the exporting countries for important raw materials, such as coal and palm oil (crude palm oil/CPO).

From the data shared by the state treasurer, it was revealed that the effect of the commodity windfall in 2021 on the tax sector was IDR 117.8 trillion.

Then for the 2022 period, it is projected to reach its peak with IDR 79.8 trillion. As for the Draft State Revenue and Expenditure Budget (APBN) in 2023, it is stated that only IDR 211 trillion.

We are trying to stabilize this tax revenue. Indeed, in all tax countries, it follows the economic cycle. However, with the reform steps now being taken (the Law on Harmonization of Tax Regulations), the tax base is expected to continue to expand so that it does not only depend on certain moments", said Minister of Finance Sri Mulyani.