Tax Shortfall: 2024 Revenue Collection Reaches Only 97.2% of Target

JAKARTA. The Ministry of Finance reported tax revenue realization as of December 31, 2024, amounting to IDR 1,932.4 trillion. This figure falls below the target of IDR 1,988.9 trillion, indicating a shortfall.

However, Deputy Minister of Finance Anggito Abimanyu noted that compared to the realization in 2023, the 2024 tax revenue has grown by 3.5%.

In detail, Non-Oil and Gas Income Tax contributed IDR 997.6 trillion to last year’s revenue, accounting for 51.6% of the total, and grew by 0.5% compared to the previous year.

Corporate Income Tax Faces Contraction

However, Corporate Income Tax experienced a significant contraction of 18.1% compared to last year’s realization, dropping to IDR 335.8 trillion. This decline is attributed to reduced corporate profitability in 2023.

Meanwhile, other components of Non-Oil and Gas Income Tax, such as Article 21 Income Tax or employee income tax, showed positive growth of 21.1%, reaching IDR 243.8 trillion. This was driven by the creation of new jobs and sustained employee wages.

As for oil and gas income tax, its realization amounted to IDR 65.1 trillion, which is contracted by 5.3%. This figure represents only 3.4% of the total revenue.

Increased Consumption Boosts VAT

As of December 31, Value-Added Tax (VAT) and Sales Tax of Luxury Goods (STLG) revenue reached IDR 828.5 trillion, up 8.6% from the previous year, accounting for 42.9% of total tax revenue.

The growth in VAT revenue is attributed to rising domestic consumption, particularly in the food and tobacco industries. (ASP/KEN)