2022 Tax Revenue Achieves Target; Non-Oil and Gas Sector Remains the Largest Source

The Ministry of Finance reports that tax revenue realization from the beginning of the year until December 14, 2022, has reached Rp1.63 quadrillion. The contribution to tax revenue still comes from the non-oil and gas sector.

According to Minister of Finance Sri Mulyani in the "Our State Budget" Press Conference on Tuesday (20/12/2022), tax revenue in 2022, valued at Rp1.48 quadrillion, surged 41.93% compared to 2021 revenue, setting a new record high since the pandemic, as shown in the graph.

"This very high increase will be our capital to ensure that the State Budget becomes increasingly healthy, so that the State Budget can protect the community, protect the economy, and continue to support Indonesia's development," said Sri Mulyani.

During the January-December 14, 2022 period, the realization of Non-Oil and Gas Income Tax (PPh Non-Migas) revenue reached Rp900 trillion, or 120.2% of the target.

Then, the realization of Oil and Gas Income Tax (PPh Migas) reached Rp75.4 trillion (116.6% of the target), Value Added Tax and Sales Tax on Luxury Goods (PPN and PPnBM) reached Rp629.8 trillion (98.6% of the target), while Land and Building Tax (PBB) and Other Taxes reached Rp29.2 trillion (90.4% of the target).

Although this year's tax performance is good, Sri Mulyani stated that the government needs to be vigilant next year.

"From April 2022 to today, the cumulative growth of tax revenue has always been above 40%. However, we see that it will not be possible for the growth to continue to be high. So we also have to calibrate our tax revenue target," said Sri.

"And indeed, in 2023, our tax revenue target is quite modest, because we see that for two years (tax revenue) has grown relatively high," she continued.

(read: List of Countries with the Highest Income Tax in the World, Where Does Indonesia Rank?)