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Govt opens 2024 with 8 percent drop in January tax revenue
The Finance Ministry said on Thursday that despite posting a year-on-year drop of over 8 percent in tax revenue in January, the state budget still booked an overall surplus of Rp 31.3 trillion that month.
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Finance Minister Sri Mulyani Indrawati prepares to present the state budget on Jan. 2, 2024 at the ministry in Jakarta. (The Jakarta Post/Deni Ghifari)
T
he government booked some Rp 149 trillion (US$9.57 billion) in tax revenue in January, a drop of over 8 percent compared to same period last year and 7.5 percent of this year’s full-year target of Rp 1.98 quadrillion.
“Our tax revenue is still sufficiently positive, although we know that in 2021 and 2022, our tax revenue growth was very high,” Finance Minister Sri Mulyani Indrawati told an online press briefing on Thursday.
Value added tax (VAT), employee and corporate income tax together contributed over 50 percent of the country’s tax revenue in January.
While VAT remained the largest contributor, it dropped 30 percent to Rp 35.6 trillion in January from Rp 51.41 trillion in the same period last year. Employee income tax was the second-largest contributor, growing 26 percent year-on-year (yoy) to Rp 28.3 trillion.
Sri Mulyani acknowledged that corporate income tax, which fell over 11 percent to Rp 18.2 trillion in January, had seen a weakening trend in recent months.
The minister noted that January’s tax revenue reflected consistent growth of the Indonesian economy as a whole.
Manufacturing and trade still led tax revenue sources, followed by the financial services and construction sectors.
