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View all search resultsGovt aims to collect more tax without hiking rates
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An officer assists taxpayers in filing their annual tax returns via the Tax Directorate General's Coretax system on March 27 at the Meulaboh Tax Office in West Aceh, Aceh. ( Antara/Syifa Yulinnas)
T
he 2027 budget plan passed last week foresees the highest tax revenue relative to gross domestic product in the past decade, which the government aims to achieve without introducing new levies or hiking rates.
Tax director general Bimo Wijayanto told reporters in a media briefing on Thursday that the government was looking to reel the ratio up to 9.26 percent of GDP in the 2027 state budget from the 8.96 percent projected for this year.
He said the figure had “never been above 9 percent” in the past decade and the government “dared to” set it above 9 percent for next year, banking solely on a better taxation registry that captures a broader base.
So far, there has not been an increase of any tax rate in the pipeline for next year, nor is there any plan to introduce new taxes to reach the target, Bimo said.
The budget sets next year’s tax revenue target at Rp 2.6 quadrillion (US$145 billion), marking a 12.2 percent year-on-year (yoy) increase from this year’s forecast of Rp 2.31 quadrillion.
While the figures above refer to tax revenue in the narrow sense of the word, the Finance Ministry has yet to reveal its target for the more commonly used tax-to-GDP ratio, which includes customs and excise revenue.
Indonesia’s tax-to-GDP ratio reached 9.32 percent in this year’s first half, which was still far off from the 13-to-14 percent President Prabowo Subianto had promised during his election campaign in late 2023 and early 2024.
