Government and House of Representatives Agree on 2022 Tax Revenue Target of Rp 1,510 Trillion

The House of Representatives' Budget Board (Banggar) and the government have agreed on a tax revenue target of Rp 1,510 trillion in the 2022 State Budget Draft (RAPBN). This figure is Rp 3.1 trillion higher than the tax revenue target in the 2022 RAPBN read out by President Joko Widodo (Jokowi) on August 16, 2021.

In detail, the 2022 tax revenue target increased by 0.16% from Rp 1,262.9 trillion to Rp 1,265 trillion. Meanwhile, customs and excise revenue increased by 0.4% from Rp 244 trillion to Rp 245 trillion.

House Budget Board Chairman Said Abdullah is optimistic that this increased target will be easily achieved if the government optimizes and reforms the tax system. Furthermore, Said believes the 2022 tax revenue target is easier to remember because the figure is round, unlike the one previously proposed by the government.

One strategy to achieve this target is to impose excise duties on plastic and sweetened food and beverages. House Budget Board member from the NasDem faction, Fauzi Amro, believes that excise duties on sweetened food and beverages have significant potential to increase tax revenue next year.

Previously, Finance Minister Sri Mulyani stated that the 2022 tax revenue target will not yet return to pre-Covid-19 pandemic levels. This is because businesses have not yet recovered from the impact of the pandemic.