Amidst sluggish state revenue, the House of Representatives (DPR) and the government have agreed to increase the 2018 tax revenue target by Rp 8.72 trillion (0.54 percent) to Rp 1,618.09 trillion from the initial proposal of Rp 1,609.37 trillion. Tax revenue even increased by 9.87 percent from the 2017 Revised State Budget (APBNP), which was only Rp 1,472.69 trillion.
The increase in the 2018 tax revenue target comes from Value Added Tax (PPN) of Rp 6.5 trillion (1.21 percent) to Rp 541.8 trillion. Then, Income Tax (PPh) increased by Rp 2.21 trillion (0.26 percent) to Rp 855.13 trillion, and Land and Building Tax (PBB) by Rp 10 billion (0.06 percent) to Rp 17.37 trillion.
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