Tax Revenue Contracts in Q1 2025 Despite March Improvement
JAKARTA. Tax revenue realization throughout the first quarter of 2025, or during the January–March 2025 period, contracted by 3.9% compared to the same period in 2024.
According to data released by the Ministry of Finance, gross tax revenue from January to March 2025 amounted to IDR 467 trillion, while in the same period in 2024, it reached IDR 486.1 trillion.
However, Minister of Finance Sri Mulyani stated that tax revenue improved monthly in March 2025 compared to January and February 2025.
Deputy Minister of Finance Anggito Abimanyu elaborated that tax revenue in January was IDR 159.1 trillion, in February it was IDR 139.8 trillion, and in March it rose to IDR 168.1 trillion.
According to him, this improvement was supported by revenue from Income Tax (Article 21) and Domestic Value-Added Tax (VAT). In addition, the increase in revenue in March 2025 was also attributed to improvements in the Coretax tax administration system.
He expressed optimism that this positive trend would continue, provided that the Coretax system operates effectively and public economic activity continues to strengthen.
Breakdown of Tax Revenue Realization by Tax Type
A detailed breakdown shows that Income Tax (Article 21) revenue in March 2025 grew by 3.3% to reach IDR 21.5 trillion. The performance of Income Tax Article (ITA) 21 revenue was significantly influenced by the increase in employee income and a decline in taxpayers claiming compensation for overpaid Income Tax Article (ITA) 21 from 2024 to March 2025.
Meanwhile, the realization of Income Tax Article (ITA) 25 amounted to IDR 21.3 trillion, driven by an improvement in the financial performance of domestic corporations.
Furthermore, Domestic Value-Added Tax (VAT) revenue was realized at IDR 53 trillion, and VAT on Imports at IDR 24.42 trillion.
The performance of domestic VAT revenue aligns with improvements in the manufacturing production index, as domestic VAT is a tax closely tied to consumption activities. (ASP/KEN)
