economy

The DPR And The Government Have Increased The Tax Revenue Target In The 2026 State Budget Plan

The DPR and the Government have reached an agreement to increase the tax revenue target in the Draft State Budget (RAPBN) for 2026.

In the framework of the Macroeconomic Framework and Key Fiscal Policy Principles (KEM-PPKF), the tax target is set at 10.08-10.45 percent of the Gross Domestic Product (GDP).

"The agreement is 10.08-10.54 percent of GDP," stated the Vice Chairman of the Budget Agency (Banggar) of the Indonesian House of Representatives, Jazilul Fawaid, during the 25th Plenary Session of the Indonesian House of Representatives for the Fourth Session Year 2024-2025 in Jakarta on Thursday.

With this adjustment, the state revenue target is now set at 11.71-12.31 percent of GDP, an increase from the previous target of 11.71-12.22 percent of GDP. Meanwhile, non-tax state revenue (PNBP) is targeted to be in the range of 1.63-1.76 percent of GDP.

Jazilul mentioned that the general policy in the field of taxation and PNBP is expected to mitigate existing risks and challenges.

For instance, he said, by expanding the tax base through intensification and extensification to support a robust fiscal environment, enhance economic growth, and protect the community.

Furthermore, there will be an increase in compliance through technology-based supervision, strengthening synergy and collaborative programs, as well as law enforcement to support improvements in tax administration and organization.

Lastly, there will be a reinforcement of sustainable tax reform and harmonization of international tax policies to encourage an increase in revenue and tax ratios.

Finally, the management of tax incentive distribution is becoming more focused and measurable to accelerate investment and the downstreaming of industries that generate high added value.

Meanwhile, regarding the general policy on Non-Tax Revenue (PNBP), Jazilul stated that it involves the more optimal utilization of natural resources (SDA) through policy refinement, improved management of natural resources (SDA), and enhancing domestic added value while still considering environmental sustainability.

Next, there is a need for improved innovation in policy evaluation for better governance, the implementation of PNBP oversight to enhance compliance and governance of PNBP, as well as the optimization of PNBP.

Lastly, there is a call for increased synergy among government agencies, including the utilization of technology and information.

Tag: Banggar Jazilul Fawaid RAPBN