Throughout 2023, Indonesia's Tax Ratio Reaches 102.8 Percent

JAKARTA - The Ministry of Finance noted that the realization of tax revenues throughout 2023 reached IDR 1,869.2 trillion.

This figure exceeds the target of 108.8 percent of the 2023 State Budget and 102.8 percent of the Presidential Regulation target of 75/2023.

Minister of Finance (Menkeu) Sri Mulyani Indrawati explained, this 2023 tax revenue also grew double digits, which was 8.9 percent compared to 2022, which realized Rp1,716.8 trillion.

"From the text side, the tax results for our Gross Domestic Product (GDP) are 10.21 percent. This is roughly the tax revenue that is approaching Isha's time because it has been at 18.69," he said at the State Budget press conference, Tuesday, January 2.

Sri Mulyani received taxes, supported by stable domestic economic performance and tax revenues obtained from oil and gas Income Tax (PPh) of IDR 68.8 trillion or 96.0 percent.

"PPh oil and gas has contracted due to the decline in commodity prices. It contracted 11.6 percent to Rp68.8 trillion," he said.

Then, for non-oil and gas income tax, the realization reached Rp993 trillion, or 101.5 percent of the target, and grew 7.9 percent from the same period in 2022.

In addition, tax revenues are also supported from Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM), the realization reached Rp764.3 trillion or 104.6 percent of the target.

This realization grew 11.2 percent compared to 2022.

Furthermore, the Land and Building Tax (PBB) and other taxes reached IDR 43.1 trillion or 114.4 percent of the target.

This figure also grew 39.2 percent compared to the same period in 2022.

"Everything grew positively, what went down was the oil and gas tax because commodity prices had dropped and in this case there were several factors regarding receipts that were not repeated, namely the timing of Tax Amnesty volume 2 or PPS 2022 which did not repeat itself," he explained.

Even so, Sri Mulyani admitted that the growth in tax revenues in 2023 slowed from 2022, where the tax ratio in 2023 reached 10.21 percent of GDP.

This figure is down when compared to the previous year, which was 10.41 percent.

However, this realization is greater than the initial target of 9.61 percent in 2023.