Indonesia's Main Tax Realization as of March 15, 2024: Domestic VAT Decreases

The Ministry of Finance (Kemenkeu) reported that Indonesia's tax revenue reached Rp342.88 trillion from January 1 to March 15, 2024. This figure is equivalent to 17.24% of the 2024 State Budget (APBN) target.

Tax revenue realization in the middle of this month decreased by 3.7% year-on-year (yoy).

Sri Mulyani, Minister of Finance, detailed several key tax components as contributors to Indonesian taxation.

The largest came from domestic value-added tax (PPN DN), namely Rp65 trillion, contributing 18.97%. However, its cumulative growth plummeted by 25.8% in the period up to mid-March 2024.

"Domestic VAT. This is the largest contributor, but it is experiencing considerable pressure. However, without VAT refunds, domestic VAT still grew by 6.9%," said Sri Mulyani in an online press conference on the Kemenkeu channel, Monday (25/3/2024).

Second is Article 21 Income Tax (PPh 21), with a realization of Rp59.91 trillion and a contribution of 17.47%.

Sri Mulyani said the growth of this tax is very impressive. Cumulatively, it reached 24.3% in January-March 15, 2024, while the same period the previous year was 21.7%.

"This is the tax paid by workers, deducted by the company and submitted to the state," said Sri Mulyani.

Third is Corporate Income Tax (PPh Badan) with a realization of Rp55.91 trillion and a contribution of 16.31%. Its cumulative growth fell by 10.6%. This contrasts with the same period the previous year, which reached 43.3%.

"Corporate Income Tax experienced a fairly sharp correction due to refunds [resulting from] commodity prices. This is what we must be wary of, the composition of state revenue and pressure, corrections to commodity prices," said Sri Mulyani.

Fourth is Import VAT with a realization of Rp51.3 trillion and a contribution of 14.96%. Fifth, Final Income Tax (PPh Final), amounting to Rp30.79 trillion and contributing 8.98%.

Sixth, Import PPh 22 amounting to Rp16.09 trillion and contributing 4.69%. Seventh, PPh 26 amounting to Rp15.35 trillion and contributing 4.48%.

Finally, PPh OP amounted to Rp2.59 trillion and contributed only 0.76%.

(See also: Tax Revenue Reaches Rp342.88 Trillion as of March 15, 2024)