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Govt targets tax revenue hike despite commodity price drop
The Finance Ministry has raised the bar for state income by more than 9 percent despite this year’s lower global prices affecting corporate results.
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Finance Minister Sri Mulyani (left), Coordinating Economic Minister Airlangga Hartarto (second left), Bank Indonesia Governor Perry Warjiyo (second right) and Financial Services Authority chairman Mahendra Siregar pose for a photo before the press on July 28, 2023, in Jakarta. (The Jakarta Post/Deni Ghifari)
T
he Finance Ministry has raised the bar for state income by more than 9 percent for 2024, despite lower global prices affecting corporate results.
Ihsan Priyawibawa, the Taxation Directorate General’s director for tax compliance and income, admitted that reaching next year’s target would not be easy.
“It will be quite challenging actually, especially when we see the conditions in 2023,” Ihsan said on Tuesday.
Agreed to by the House of Representatives and the government last week, the tax revenue target for 2024 has been bumped up 9.4 percent to Rp 1.98 quadrillion (US$127.4 billion) from the Rp 1.81 quadrillion planned for this year.
Ihsan said this year’s tax revenue was projected to exceed the target by as much as Rp 100 trillion.
He pointed out, however, that that was by virtue of the “commodity boom” in 2022, when Indonesia reaped a windfall from rising prices for key export products like palm oil and coal.
The positive projection for this year is based to a large extent on the private sector accounting for a strong 2022 performance, which should be reflected in this year’s tax payments.
