Ministry Of Finance Reveals 2025 Unpaid Taxes Estimated To Reach IDR 530 Trillion

Illustration: Photo: Doc. ANTARA

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the amount of tax estimates that the government deliberately did not collect in 2025 is estimated at IDR 530 trillion.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the value was part of the tax incentive policy, which was aimed at maintaining the circulation of money in the national economy.

Suahasil explained, this policy includes various forms of facilities, such as exemption from Value Added Tax (VAT), tax holidays, tax allowances, and exemption from import duties.

"Our estimate for 2025 is between around Rp530 trillion which is not collected by the government. Every year we try this estimate. This has started to be estimated from 2016," he said at the Prabowo-Gibran Government 1 Year event on Thursday, October 16.

"So if we give tax holidays, the company does not pay taxes. If we give VAT exemption, it means that the transaction does not pay taxes. We try to continue to estimate and we calculate it, so that sometimes we say the tax ratio is small, the tax ratio is small. Okay, the percentage is that much but we don't collect it. How much? IDR 530 trillion. This continues to increase," he added.

Suahasil explained that the amount of tax that was not collected was equivalent to 2 percent of Gross Domestic Product (GDP).

Although the amount is nominally large, according to him, this policy aims to maintain liquidity in the community and encourage economic activity.

"Well, so that we don't get caught up with the nominal number of trillions, we count gross domestic product. Against gross domestic product, this is about 2 percent of GDP, it should be tax revenue but we deliberately don't collect it so that the money keeps spinning in the community," said Suahasil.

Meanwhile, if it is ordered from 2021, taxes that are deliberately not collected by the government in 2021 are IDR 293 trillion or 1.73 percent of GDP, while in 2022 they are worth IDR 328.5 trillion or 1.68 percent of GDP.

Next in 2023 is IDR 360 trillion or 1.72 percent of GDP, and in 2024 it is worth IDR 400.1 trillion or 1.81 percent of GDP.

Furthermore, the estimated year 2025 is IDR 530.3 trillion or 2.23 percent of GDP and the estimated year 2026 is IDR 563.6 trillion or 2.19 percent of GDP.

Suahasil gave an example of taxes that were deliberately not collected by the government, namely VAT in the education, health and electricity sectors below 6,600 VA.

"Then the final VAT, the final PPH, is a form of tax facilities, which we mean, so that the money remains in the economy, rotates in the economy," he said.

Furthermore, Suahasil said, the manufacturing sector as the largest incentive recipient, with an estimated tax exemption of Rp. 137 trillion, the agricultural sector of Rp. 60.5 trillion, the trade sector of Rp. 55.3 trillion and other service sectors of Rp. 53.5 trillion.

Furthermore, the financial and insurance sectors reached IDR 52.1 trillion, the transportation and warehousing sector IDR 39.7 trillion, the education services sector IDR 25.3 trillion, the construction sector IDR 22.1 trillion, and the Social Security sector IDR 21.6 trillion.

In terms of the perpetrators, Suahasil said that households are the largest beneficiary of this tax incentive, which is around 55 percent, which is in line with the proportion of household consumption to GDP.

Meanwhile, MSMEs enjoy around 18 percent, and the business world and investment take up about 25 percent of the portion.

"This policy continues. This is not a temporary policy. Not just waiting for the 2021 stimulus, 2022, 2023. This is going on. This is going on. Now we hope that it will be an encouragement too, used. If the incentives are not used, it's usually the one who gives it a bit likes the feeling. If there are incentives being used, please," he explained.

Suahasil emphasized that the use of tax incentives is the most effective when accompanied by an increase in economic activity.