Up to Q3, Tax Revenue Contracted 8.9%

Monday, 29 April 2024

Up to Q3, Tax Revenue Contracted 8.9%

JAKARTA. The realization of tax revenue until the end of March 2024 or throughout the third quarter of 2024 still recorded a contraction of 8.9% compared to the revenue achieved in the same period in 2023.

The value of tax revenue realization was recorded at IDR 393.91 trillion. This amount is equivalent to 19.81% of the tax revenue target stated in the 2024 State Budget (APBN).

The government argued that the contraction occurred due to the impact of the decline in commodity prices that occurred in 2023, resulting in many taxpayers submitting returns of tax overpayments or restitution.

In detail, the tax revenue consists of Non-Oil and Gas Income Tax (PPh nonmigas) of IDR 220.42 trillion, Oil and Gas Income Tax (PPh migas) of IDR 14.53 trillion, Value Added Tax (VAT) and Sales Tax on Luxury Goods (STLG) of IDR 155.79 trillion, then Land and Building Tax (L&B Tax) and other taxes recorded at IDR 3.17 trillion.

Meanwhile, when viewed by the sector, tax revenue is still predominantly generated by the processing industry, accounting for 26.2% of the total tax revenue. Following closely, the trade sector made the second-largest contribution at 24.9%.

Customs Duties Were Also Corrected

Negative growth also occurred in revenue from Customs and Excise. Throughout the first quarter of 2024, customs and excise revenue was recorded at IDR 69 trillion, down 4.5% compared to the same period in 2023.

The decline was driven by a correction in Import Duty revenue and Excise revenue of 3.8% and 6.9% respectively from last year to IDR 11.8 trillion and IDR 53 trillion. Meanwhile, export duty revenue grew positively by 37% to IDR 4.2 trillion.  

The contraction in Import Duty and Excise revenue was driven by a decrease in import duties on major commodities such as four-wheeled vehicles, spare parts, natural and artificial gas as well as mining and construction machinery. Meanwhile, the decline in excise revenue was due to the decline in cigarette production which led to a decrease in excise tax on tobacco products. (ASP/KEN)



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