In 2022, the price of commodities, including CPO, rose quite significantly that provided benefit for tax revenue. This will not be repeated in 2023, he noted during the International Tax Conference streamed online on Wednesday.
In 2023, the Directorate General of Taxes estimated that tax revenue will reach Rp1,718 trillion, or only grow by around five percent annually.
This tax revenue growth declines, from 25 percent annually in 2022, with total tax revenue estimated to reach Rp1,608.1 trillion.
In addition to the declining commodity price, high tax revenue in 2022 was caused by the Voluntary Discretion Program (PPS), with total collected tax reaching Rp60 trillion.
This program will not be organized again in 2023, thereby translating to the fact that revenue from this program will be lost in 2023, Arsal pointed out.
Moreover, unstable global economic conditions and politics, such as the war in Ukraine, conflict tendency between China and Taiwan, and high inflation in several countries can also potentially weaken Indonesia's tax revenue in 2023.
Concurrently, global economic moderation can restrict the capacity of Indonesia and its industries to export products. This can be seen in various sectors, primarily in textile and textile products (TPT), he highlighted.
Developed countries, such as Europe, which usually has a market share over Indonesia's textile products, are also experiencing an economic decline, so the demand from these countries for non-food products may also decline.
Many TPT industry actors conducted lay-offs due to weakening demand, especially from developed countries, since regions, such as Europe, are also experiencing crisis with high inflation in energy and food, Arsal noted.
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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Rahmad Nasution
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