Ministry of Finance Reveals 41.3 Per Cent Rise in Luxury Goods Tax Revenue

Finance Minister Purbaya Yudhi Sadewa has refuted assumptions that business activities are experiencing a slowdown. According to the Minister, such a condition is not reflected in tax revenue performance, which has instead grown significantly up to the end of May 202t6.

Purbaya stated that tax revenue grew by 22.1 per cent year-on-year up to May 2026. This figure is higher than the growth recorded up to April 2026, which stood at 16.1 per cent. The increase in revenue aligns with strengthening national economic activity and the improved implementation of the Coretax system.

“Tax revenue continues its positive growth trend in line with economic activity and the increasingly effective implementation of Coretax,” said Purbaya during the APBN Kita June 2026 press conference in Jakarta on Friday (5/6/2026).

He explained that one of the main pillars of tax revenue growth comes from Corporate Income Tax (PPh Badan) and Corporate Income Tax deposits. Up to May 2026, revenue from this category reached Rp167.6 trillion, representing a 23.9 per cent growth compared to the same period last year.

According to Purbaya, the rise in corporate tax contributions indicates that the business world remains healthy and capable of recording revenue growth. “This shows that companies are still growing and performing well. Previous concerns that the business world was experiencing a slowdown have proven unfounded,” he said.

Furthermore, Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM) revenue also grew strongly. Up to May 2026, revenue from these two tax types reached Rp315.7 trillion, an increase of 41.3 per cent year-on-year.

Purbaya assessed that the growth in PPN and PPnBM reflects sustained strong domestic consumption and stable public purchasing power. “PPN and PPnBM, as consumption taxes, have increased significantly in line with strong domestic consumption and maintained purchasing power,” he stated.

The performance of several economic sectors is also reflected in tax revenues. The trade sector recorded revenue growth of 52.4 per cent, followed by the mining sector at 28.2 per cent and the manufacturing sector at 19.7 per cent. According to Purbaya, the high revenue from these sectors indicates that real economic activity is still moving and continuing to grow.

“The performance of these sectors shows that economic activity continues to move. When trade grows highly, it means transactions and consumption are increasing, while growth in manufacturing indicates that factories remain in production,” he concluded.