Tax Collection Falls Short, Only 60.16% Achieved by August
Tuesday, 24 September 2024
JAKARTA. The Ministry of Finance recorded that tax revenue realization up until the end of August 2024 reached IDR 1,196.54 trillion, or 60.16% of the target set in the 2024 State Budget.
This achievement is relatively low compared to the tax revenue realization for the same period in the past four years. For example, in 2021, the tax revenue by August was recorded at 60.29%.
Then in 2022, the achievement was 92.63% of the APBN target, and in 2023, it reached 72.58%. It’s worth noting that in 2021, 2022, and 2023, the government successfully met its tax revenue target consecutively.
Tax Revenue Experiences Contraction
Compared to the same period in 2023, tax revenue realization as of August 2024 experienced a contraction of 4.04%. This contraction was driven by the performance of Non-Oil and Gas Income Tax revenues, which saw negative growth of 2.46%.
If detailed, the tax revenue realization up to the end of August 2024 is as follows: Non-Oil and Gas Income Tax amounted to IDR 665.52 trillion, Oil and Gas Income Tax at IDR 44.45 trillion, Value-Added Tax (VAT) and Sales Tax on Luxury Goods (STLG) at IDR 470.81 trillion, and lastly, Land & Building Tax (L&B tax) and Other Taxes at IDR 15.76 trillion.
By tax type, the contraction occurred in Corporate Income Tax, which shrank by 32.1%, and Domestic VAT, with a decline of 4.9%. Meanwhile, other tax types showed positive growth, such as Income Tax Article (ITA) 21, which grew by 24.8%, ITA 22 on Imports by 7.3%, Individual Income Tax by 12.6%, ITA 26 by 3.4%, Final Income Tax by 13.9%, and VAT on Imports grew by 6%.
Revenue Contraction Driven by Decline in Corporate Performance
The government stated that the contraction in Corporate Income Tax revenue occurred due to a decline in corporate performance in 2023, as a result of falling commodity prices. Consequently, both annual Corporate Income Tax payments and periodic Corporate Income Tax payments have decreased.
Meanwhile, the drop in Domestic VAT revenue was caused by an increase in tax refunds, particularly from the manufacturing, trade, and mining sectors. (ASP/KEN)
