How much revenue does the Central Government receive from taxes?

Economics & Macro

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07/02/2018 13:15 WIB

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How much revenue does the Central Government receive from taxes?

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Government Tax Revenue (1990-2018)

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Taxes are a crucial component of the national budget, as approximately 85% of government revenue comes from taxes. To increase revenue from the tax sector, the government continuously improves the business climate, including providing incentives. Furthermore, optimization of economic potential and reform measures are undertaken to increase tax revenue from the public.

In the 2018 State Budget (APBN), the government targeted tax revenue of Rp 1,618.1 trillion. This figure represents a 9.9% increase from the 2017 outlook and a 0.54% increase, or approximately Rp 8.7 trillion, from the 2018 Draft State Budget (RAPBN).

From 1990 to 2017, government tax revenue showed year-on-year increases. Exceptions were 1999, due to Indonesia's economic crisis and unrest, and 2009, during the US financial crisis. In 1999, state tax revenue plummeted by 73%, reaching only Rp 25 trillion compared to Rp 102 trillion the previous year. However, the following year it increased almost fourfold to Rp 115 trillion.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."