Reaching 88% in September, Sri Mulyani is Confident the 2022 Tax Target will be Surpassed

JAKARTA. Minister of Finance Sri Mulyani is optimistic that tax revenue in 2022 can be higher than the target set in the Revised 2022 State Revenue and Expenditure Budget (APBN).

This is due to the fact that until the end of September 2022, the realization of tax revenues has reached 88.3% of the target of the Revised 2022 State Budget or stated in Presidential Regulation (Perpres) Number 98 of 2022, amounting to IDR 1,484.96 trillion.

The tax revenue target in the Revised 2022 State Budget indeed exceeds the target in the 2022 State Budget which is set at IDR 1,265 trillion. "If we look at the percentage of achievement, it seems that tax revenues will surpass the revenue target according to Presidential Regulation 98/2022," said Sri Mulyani, Friday (21/10).

If it is viewed in detail, tax revenue up to the end of September 2022 is comprised of Non-Oil and Gas Income Tax of IDR 723.3 trillion, Oil and Gas income tax of IDR 62.3 trillion, Value Added Tax (VAT) and Sales Tax on Luxury Goods (STLG) IDR 504.5 trillion, then Land and Building Tax and Other Taxes amounting to IDR 20.4 trillion.

Sri Mulyani explained that the performance of tax revenue until the end of the third quarter was quite good as it was supported by a number of factors. First, the impact of rising commodity prices, economic growth due to a low base in 2021 and the Voluntary Disclosure Program (VDP).

Decreasing Trend

Although still recording high growth, which is above 50%, Sri Mulyani said that the government must be aware of the trend of tax growth which continues to show a slowdown.

Tax revenue growth until the end of September was indeed the lowest in four months. Until the end of August 2022, tax revenue growth reached 58.1%, and previously as of the end of July 2022, it reached 58.8%.

A similar trend occurred in monthly tax revenue growth. Throughout September 2022, tax revenue growth was only 28%, a far cry from revenue growth in June, July, and August which were 80%, 62%, and 53%, respectively.

It indicates that monthly tax revenues are in the normalization phase. The government estimates that the trend will continue until the end of 2022 in line with the increase in the tax revenue base at the end of 2021.