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Tax Ratio Targeted: 11.2%-12% for 2025 with Enhanced Tax Institutions

Monday, 22 April 2024

Tax Ratio Targeted: 11.2%-12% for 2025 with Enhanced Tax Institutions

JAKARTA. Indonesia's tax-to-gross Domestic Product (GDP) ratio target in 2025 is set to be between 11.2%-12%. 

This target is higher than the realization of the Tax Ratio in 2023 and the Tax Ratio target in the 2024 State Budget (APBN) which amounted to 10.32% and 10.12% respectively.

Quoting Kontan.co.id, the target figure is as stated in the Initial Draft of the 2025 Government Work Plan (RKP).

The RKP is a document prepared by the government as a basis for preparing the 2025 Draft State Budget (RAPBN).

One of the government's efforts to implement it is by improving taxation institutions. In addition, it also encourages the improvement of the tax system, including the implementation of the Coretax System.

Coretax System will then be managed based on data and risk and data interoperability. Interoperability is the ability of an electronic system with different applications so that they can be shared.

Another step is to conduct tax extensification and supervision, especially on High Wealth Individual (HWI) Taxpayers. In addition, the distribution of tax incentives will also be encouraged to be more targeted based on a priority scale.

The prioritized tax incentive recipients in 2025 include agriculture, manufacturing, tourism, and micro, small and medium enterprises (MSMEs). (ASP/KEN)
 



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