Tax Targets in Draft State Budget 2027: VAT Tops IDR1,000 Trillion

JAKARTA, DDTCNews — The government has detailed the tax revenue targets proposed in the draft state budget 2027.

Referring to the financial note of the draft state budget 2027, the income tax target for next year is proposed at IDR1,277.7 trillion, growing 9.9% compared with the income tax outlook for 2026.

"Taking into account revenue developments in previous years, the prospects for the national economy in 2027 as well as the continuing reform of tax administration and supervision, income tax revenue in the draft state budget 2027 is targeted to reach IDR1,277.7 trillion," the government wrote in the financial note of the draft state budget 2027, cited on Tuesday (18/8/2026).

Meanwhile, the VAT and sales tax on luxury goods (STLGs) target has, for the first time, been proposed to exceed IDR1,000 trillion. Next year, VAT and STLGs revenues are targeted to reach IDR1,126.1 trillion, growing 13.4% compared with the VAT and STLGs outlook for this year.

The proposed VAT and STLGs target was set by taking into account strong domestic consumption prospects, expanding consumption and trade activity and the continuing transformation of the national economy.

"These efforts are undertaken through strengthening tax administration, increasing the use of technology and integration of tax data, strengthening taxpayer compliance and expanding the tax base in a manner adaptive to developments in business models and the digital economy," the government stated.

With regard to other taxes, the government has proposed a target of IDR159 trillion, representing a rise of 25.2% compared with the outlook for other tax revenues this year.

The performance of other tax revenues continues to record a growth trend, primarily due to the high consumption of tax deposits by taxpayers.

Land and building tax (L&B Tax) revenue for next year is proposed at IDR28.6 trillion, growing 3.5% compared with the 2026 outlook. This growth is supported by improved commodity prices, increased natural resource production and reduced normalisation pressures from previous years.

Across all tax categories above, the total tax revenue target for next year is proposed at IDR2,591.4 trillion. (dik)