The Government Is Optimistic Of Tax Revenue Growing Rp139 Trillion Thanks To The HPP Law

Minister of Finance Sri Mulyani. (Photo: Instagram @smindrawati)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani believes that the implementation of the Tax Harmonization Law (HPP) will boost state revenues, especially in the tax revenue sector. He conveyed this during a virtual press conference after the ratification of the HPP Bill on Thursday night, October 7.

"In 2022, we estimate that the additional income from taxes will be around Rp. 130 trillion," he said.

This amount was obtained from the results of the 2022 tax revenue outlook which amounted to Rp1,401.3 trillion compared to without the HPP Law which amounted to Rp1,265 trillion.

Then, the projected customs and excise tax increase to Rp248.1 trillion compared to without the HPP Law which amounted to Rp245 trillion.

Thus, the total increase in tax revenue in 2022 is Rp. 139.3 trillion compared to without the HPP Law, which is Rp. 1,510 trillion.

The government also claims that the HPP Law will encourage the growth of the tax ratio to 9.22 percent of gross domestic product (GDP).

"A sign of reform and also the HPP Law, our tax ratio until 2025 will stagnate at the level of 8.4 percent to 8.6 percent of GDP," said the Minister of Finance.