PPS and VAT Increase are the Biggest Sources of Tax Revenue
The Director General of Taxes at the Ministry of Finance, Suryo Utomo, said that the implementation of Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP) was the main lever for tax revenues, especially in the realization as of June 2022.
State tax revenues until August 2022 reached Rp. 1,171.8 trillion, up 58.1 percent compared to the same period the previous year.
Especially for the scope of the HPP Law regulation which includes the voluntary disclosure program (PPS), as well as the increase in the value added tax (VAT) rate from 10 percent to 11 percent starting as of April 2022.
"The PPS program which ended in June (2022) and yesterday was related to VAT adjustments, those two are the biggest contributions," said Suryo in a media briefing session at the Directorate General of Taxes Office, Jakarta, Tuesday (4/10/2022).
"June is really at its best, because June is the deadline for PPS. In other months, especially in the three months of June-August, it is slightly sloping again, due to fluctuating commodity prices," he added.
Furthermore, Suryo also did not deny that the increase in commodity prices in both the domestic and international markets also had a major impact on tax revenues until August 2022.
"Commodity prices really have an effect in August to September (2022). The trend in commodity prices is reflected in income tax. There is a kind of distribution of tax payments from time to time due to the increase in commodity prices," he explained.
Suryo is also optimistic that the tax revenue target by the end of this year, as stated in Presidential Regulation (Perpres) No. 98 of 2022, amounting to Rp. 1.6 trillion can be achieved.
"We try as much as possible. To implement the target, we must calculate expectations and all kinds of calculations, there must be calculations," he concluded.
