Director General of Taxes: No Increase in VAT Rates
The Director General of Taxes, Bimo Wijayanto, has ensured that there will be no increase in Value Added Tax (VAT) rates under the leadership of Finance Minister Suahasil Nazara to pursue state revenue.
“There is none,” he stated when confirmed by the media at the Juanda Building, Jakarta, on Friday (18/09/2026).
On the same occasion, the Ministry of Finance reported that state revenue from the tax component reached Rp 1,409.9 trillion, growing by 24.1% in August 2026. This tax revenue achievement is equivalent to 59.8% of the 2026 target of Rp 2,357.7 trillion.
Finance Minister Suahasil Nazara stated that this tax revenue was supported by non-oil and gas Income Tax (PPh) at Rp 722.2 trillion, an increase of 16.6%; oil and gas PPh at Rp 39 trillion, an increase of 63.8%; VAT & Luxury Goods Sales Tax (PPnBM) at Rp 591.5 trillion, an increase of 38.9%; and Land and Building Tax (PBB) & other taxes at Rp 56.4 trillion, a decrease of 15.7%.
The increase in VAT and PPnBM revenue was influenced by strong domestic consumption. Overall, Suahasil noted that tax revenue continues to rise in line with growing economic activity.
“There is growth, there are transactions; as you saw in the slides, the demand for cement is growing, electricity demand is growing, and the demand for cars and motorcycles is growing, therefore taxes also benefit,” he said.
Potential Shortfall and the Promise Not to Raise Tax Rates
Tax revenue in 2026 has come under scrutiny due to the potential for a shortfall in meeting the established target. Tax revenue has failed to reach the target, resulting in a shortfall of up to Rp 46.9 trillion this year.
Furthermore, the projection for tax revenue this year is expected to reach Rp 2,310.8 trillion, or 98% of the tax revenue target of Rp 2,357.7 trillion.
Previously, it was emphasised that the Ministry of Finance’s current focus is not to increase the tax burden on the public, but rather to improve the effectiveness of state revenue collection through internal reforms, ensuring there are no new tax rate increases.