"VAT will increase by Rp2.9 trillion, from Rp740.1 trillion to Rp743 trillion next year," she noted at a meeting with the Budget Agency at the House of Representatives here on Wednesday.
According to Indrawati, the increase in VAT revenue was due to the possibility of an increase in inflation next year, from three percent to 3.6 percent, with economic growth targeted at 5.3 percent, so the rate of domestic economic growth would be slightly higher.
Thus, the Working Committee, which included the Budget Agency at the House of Representatives and the government, had agreed that next year's tax revenues would include oil and gas income tax (PPh) revenues of Rp61.4 trillion, non-oil and gas income tax of Rp3 trillion, as well as other taxes of Rp8.7 trillion.
Customs and excise revenues were also increased by Rp1.4 trillion, from Rp301.8 trillion to Rp303.2 trillion, comprising fixed excise duty at Rp245.4 trillion, increase by Rp200 billion of import duties, from Rp47.3 trillion to Rp47.5 trillion, and increase by Rp1.2 trillion of export duties, from Rp9 trillion to Rp10.2 trillion.
Minister Indrawati stated that the change in the target of customs and excise revenues was due to the change in the assumption of the 2023 exchange rate, from Rp14,750 per US dollar to Rp14,800 per US dollar, as well as an increase in the nominal gross domestic product in 2023, from Rp20,988.6 trillion to Rp21,037.9 trillion.
"We will also implement the Law on the Harmonization of Tax Regulations and its derivatives for 2023, so that it can increase the extensification and intensification of tax revenues," the minister added.
Overall, tax revenues in 2023 will increase by Rp4.3 trillion, from the initial allocation of Rp2,016.9 trillion to Rp2,021.2 trillion, she concluded.
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Translator: Agatha O V, Mecca Yumna
Editor: Rahmad Nasution
Copyright © ANTARA 2022
