Purbaya Optimistic Tax Ratio Will Rise In 2025 After Pressure In 2024

Minister of Finance Purbaya Yudhi Sadive expressed his optimism that the ratio of tax revenues to gross domestic product (GDP) or tax ratio will increase in 2025.

Meanwhile, so far, the tax ratio has tended to stagnate in the range of 10 percent, even decreasing in 2024 to 10.08 percent from 10.31 percent in 2023.

According to Purbaya, the decline was caused by the slowdown in national economic activity, especially in the private sector, which had an impact on the ability of taxpayers to fulfill their obligations.

"The tax ratio has dropped because the economy has slowed down in the third quarter, the private sector," said Purbaya at Airlangga University, Surabaya, quoted Tuesday, November 11.

He added that the government had prepared various policies to accelerate the economy, ranging from providing stimulus packages to placing government funds in banks.

According to him, these efforts are expected to gradually improve the performance of tax revenues.

"Triwulan IV kan kita kasih stimulus cukup besar, uang kita gelontorkan ke sistem, seperti real sektor juga bergerak lebih cepat. Seharusnya akan sedikit membaik (tax ratio), yang jelas tidak akan turun," ucap Purbaya.

Furthermore, Purbaya emphasized that with the ongoing economic recovery, tax collection in 2026 is projected to be better than this year.

"With this improvement, next year 2026 the tax collection will be better than now," he added.

In the Strategic Plan of the Ministry of Finance 2025'2029 as stated in the Minister of Finance Regulation (PMK) Number 70 of 2025, the target of increasing the tax ratio is set in stages until 2029.

In 2025, the tax ratio is targeted to reach 10.24 percent, in 2026 it is set in the range of 10.08 percent'11.34 percent; in 2027 it is 10.29 percent'12.41 percent; then it will increase to 10.75 percent'13.67 percent in 2028; and in 2029 it is expected to reach 11.52 percent-15 percent.