Tax receipts are projected to reach Rp1,450 trillion to Rp1,485 trillion until the end of this year.
Jakarta (ANTARA) - The Finance Ministry has projected that tax receipts will reach Rp1,450 trillion to Rp1,485 trillion this year, surpassing the target of Rp1,265 trillion set in the 2022 state budget.

"Tax receipts are projected to reach Rp1,450 trillion to Rp1,485 trillion until the end of this year," director of tax potentials, compliance, and receipts at the Directorate General of Taxation of the Finance Ministry, Ihsan Priyawibawa, said during a media briefing here on Friday.



Tax receipts are expected to increase on the back of rising prices of key Indonesian commodities in the global market, both processed goods and farm commodities, he informed.



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One of the country's key commodities is crude palm oil (CPO). By late April this year, the oil palm plantation sector recorded a growth of 140 percent, with the palm oil industry growing more than 600 percent, he said.



"Tax receipts from CPO helped our receipts until April," he added.


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In addition, the value-added tax tariff, which rose to 11 percent as of April, will also boost tax receipts by Rp45 trillion–Rp50 trillion, he said.



"Value added tax (receipts) reached Rp500 trillion–Rp600 trillion last year. If the baseline remains unchanged, (the figure) will increase by 10 percent multiplied by nine months. So, the potentials will reach Rp45 trillion to Rp50 trillion," he explained.



The Directorate General of Taxation had earlier announced that tax receipts in the year to May 26, 2022, had reached Rp679.99 trillion, accounting for 53.04 percent of the target of Rp1,265 trillion set in the 2022 state budget.



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Translator: Astrid Faidlatul H, Suharto
Editor: Fardah Assegaf
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