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NATIONAL

Realisation of Tax Collection Slumps

The Directorate General of Taxation’s performance plunged according to data on the realisation of economic growth in 2017 published by the Central Statistics Agency (BPS). The low performance of tax revenue elasticity on gross domestic product (tax buoyancy) shows weak government ability to collect taxes.

In 2017, tax revenue was Rp 1,151 trillion and gross domestic product (GDP) Rp 13,588 trillion, and the tax ratio to GDP only 8.4 percent. With the realisation of economic growth of 5.07 percent and inflation of 3.6 percent, tax revenue should have reached 8.67 percent.

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