BPS Reports Increase in Tax Expenditure for the Middle Class

JAKARTA. Statistics Indonesia (BPS) recorded that the portion of middle-class spending on taxes and other contributions has continued to increase in the last five years.

According to BPS, the middle class comprises individuals with monthly per capita expenditures between Rp 2.04 million and Rp 9.9 million.

Based on the 2024 National Socio-Economic Survey (Susenas), middle-class expenditure on taxes and contributions was recorded at 4.53% of total spending. In contrast, in 2014, the portion of spending on taxes and contributions for the middle class was only 1.62%.

The amount of spending on taxes and contributions by the middle class is nearly the same as that of the upper class, at 4.53%.

Share of Other Expenditure 

The types of taxes and contributions included in this expenditure group include land and building tax (L&B tax), motor vehicle tax, insurance and levies such as neighborhood association fees, garbage, security, cemeteries, and others.

The increase in the portion of spending on taxes and contributions was followed by a shift in middle-class spending trends in the last 10 years or from 2014-2024.

These shifts include increased spending on entertainment and parties. Meanwhile, spending on food has decreased.

If in 2014 middle-class spending on food and drink reached 45.53%, it has now shrunk to only 41.67%. However, spending on food and drink is still the largest.

Share of Housing Expenditure

Meanwhile, the second largest expenditure is for housing with a share of 28.52%, down from 32.87% in 2014. 

Then spending on education in 2024 was only 3.66%, down from 4.32% in 2014. Likewise, the portion of spending on health fell to 2.86% from 3.27% in 2014. (ASP)