Contraction Narrows, Tax Growth as of October 2024 Approaching Positive

JAKARTA. As of the end of October 2024, tax revenue reached IDR 1,517.53 trillion, reflecting a contraction of 0.4% compared to the same period in 2023. This was reported by Deputy Minister of Finance III, Anggito Abimanyu, during the 2024 State Budget (APBN) presentation titled APBN KITA on Friday, November 8.

Nevertheless, the contraction has shown signs of narrowing compared to previous months. Since April 2024, the contraction has gradually decreased. With this trend, the government is optimistic that 2024 tax revenues will meet the target set in the 2024 APBN, totaling IDR 1,988.88 trillion.

In detail, tax revenue realization as of October 2024 comprised Non-Oil & Gas Income Tax at IDR 810.76 trillion, Value Added Tax (VAT) and Luxury Goods Sales Tax at IDR 620.42 trillion, Land and Building Tax along with Other Taxes at IDR 32.65 trillion, and Oil & Gas Income Tax at IDR 53.7 trillion.

Tax Revenue Performance by Type

As of October 2024, tax revenue by type consisted of the following: Income Tax Article (ITA) 21 at IDR 206.99 trillion, ITA 22 on Import at IDR 61.87 trillion, Individual Income Tax at IDR 12.68 trillion, Corporate Income Tax at IDR 262.67 trillion, Income Tax Article 26 at IDR 73.81 trillion, Final Income Tax at IDR 111.63 trillion, Domestic VAT at IDR 373.34 trillion, and Import VAT at IDR 223.08 trillion.

Among these tax types, only Corporate Income Tax recorded a contraction, at 26.3%. Meanwhile, Domestic VAT, which had previously shown negative growth in recent months, turned positive by 2.4% as of October. This positive shift was driven by increased payments in the trade and manufacturing sectors, along with a decrease in tax refunds.

For reference, the largest contributor to tax revenue as of October 2024 was Domestic VAT, with a share of 24.6%, followed by Corporate Income Tax with a contribution of 17.3%.

Tax Revenue Performance by Sector

Tax revenue by sector is still dominated by the manufacturing industry, which contributes 25.8% of total revenue, amounting to IDR 369.72 trillion. However, the revenue from the manufacturing sector has shown a negative growth of 6.3% compared to the same period last year.

Meanwhile, other sectors, with the exception of the mining sector, have recorded positive growth. The trade sector, which is the second-largest contributor after manufacturing, recorded IDR 365.8 trillion, growing by 5.8% compared to the same period in 2023. (ASP/KEN)