Tax revenues in 2022 surpassed target: Finance Minister

Tax revenues in 2022 surpassed target: Finance Minister

Finance Minister Sri Mulyani Indrawati at the KiTA State Budget Press Conference in Jakarta, Tuesday, January 3, 2023. (ANTARA/Astrid Faidlatul H/rst)

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati stated that tax revenues throughout 2022 amounted to Rp1,716.8 trillion, or 115.6 percent of the target of Rp1,485 trillion, and increased 34.3 percent (yoy), from Rp1,278.6 trillion.

"The increase in the past two years was extraordinary. In 2021, the tax revenue grew by 19.3 percent, and in 2022, it grew by 34.3 percent," the minister noted at the KiTA State Budget Press Conference in Jakarta on Tuesday.

Tax revenue that exceeded the target was driven by tax components that almost entirely exceeded the target, specifically non-oil and gas income tax, value-added tax (VAT) and luxury goods sales tax (PPnBM), and oil and gas income tax.

In detail, non-oil and gas income tax revenues amounted to Rp920.4 trillion, or 122.9 percent of the target, and were able to grow 43 percent (yoy), while oil and gas income tax amounted to Rp77.8 trillion, which exceeded 120.4 percent of the target and able to grow 47.3 percent (yoy).

The minister noted that oil and gas income tax performance growth was driven by rising oil and gas commodity prices, while non-oil and gas income tax was supported by economic activity and a mix of policies.

Meanwhile, VAT and PPnBM were able to reach Rp687.6 trillion, or 107.6 percent of the target, and grew 24.6 percent due to the increase in expansive economic activity, including changes in VAT rates.

Meanwhile, property tax and other taxes were only able to reach Rp31 trillion, which was 95.9 percent of the target, and grew slightly by three percent (yoy) due to increased commodity prices.

Indrawati explained that the number of tax revenues components were reflections of economic recovery that was fairly distributed across all sectors and regions.

"This is in line with our economic recovery that is fairly even in all sectors and all regions and in terms of aggregate demand and production," she pointed out.

Meanwhile, customs and excise revenue in 2022 was reported at Rp317.8 trillion that also exceeded the target of reaching 106.3 percent and grew 18 percent (yoy), from Rp269.2 trillion.

In detail, excise revenues amounted to Rp226.9 trillion, or 103.1 percent of the target, due to the effectiveness of policies or tariff adjustments and supervision as well as the improvement in pandemic conditions, especially the relaxation of tourist destinations.

For import duties, the revenue amounted to Rp51.1 trillion, or 120.6 percent of the target, influenced by the trend of increasing national import performance as a result of increasing domestic demand.

Meanwhile, export duties revenue is at Rp39.8 trillion, or 108.5 percent of the target, driven by increased export volumes and commodity prices, especially palm oil and mineral and coal products. 

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