Until August, Additional Tax Revenue from the HPP Law Amounted to IDR 31.15 trillion

JAKARTA. The Directorate General of Taxes (DGT) stated that various changes in tax policy regulated in Law (UU) Number 7 of 2021 on the Harmonization of Tax Regulations (HPP) had an impact on state revenues in 2022.

At least until the end of August 2022, the additional state revenue contributed from the regulation reached IDR 93.15 trillion.

The addition comes from five new policies carried out by the government. Some of these policies include, firstly, an increase in the rate of Value Added Tax (VAT) from 10% to 11% which takes effect from April 1, 2022.

Second, the implementation of the Voluntary Disclosure Program (VDP) during the period January-June 2022. Third, the imposition of taxes on the Financial Technology (Fintech) industry.

Read: PMSE VAT Provisions are Adjusted to the HPP Law

Fourth, collection of VAT on Trade Through Electronic Systems (PMSE) transactions. Lastly, government policies impose taxes on cryptocurrency transactions or cryptocurrencies.

The policy that contributed the most to additional state revenue came from VDP, which succeeded in increasing revenue from final income tax payments by IDR 61 trillion.

In the explanation delivered by the Director General of Taxes Suryo Utomo, it is also known that the increase in the VAT rate also provides a large additional revenue, which is amounted to IDR 28.38 trillion.

Then, for additional income from the imposition of taxes on the Financial Technology industry, it reached IDR 107.3 billion, consisting of the payment of Income Tax Article (ITA) 23 of IDR 74.44 billion and ITA 26 of Income Tax of IDR 32.8 billion.

Meanwhile, revenues from taxes on cryptocurrency transactions reached IDR 126.8 billion, consisting of income from ITA 22 of IDR 60.8 billion and domestic VAT of IDR 66 billion.

Suryo said that with these various policies, DGT had succeeded in expanding Indonesia's tax base.