Jakarta, Klinik Farma – Director General (Dirgen) of Taxes of the Ministry of Finance (Kemenkeu) Surio Utomo said that his party has received requests from a number of entrepreneurs to reduce income tax contributions in accordance with article 25.
Suryo said the application was prompted by falling prices for Indonesia’s main exports, causing their income to drop. However, Zurio did not want to mention the number of entrepreneurs who demanded a reduction in contributions under Article 25 PPh.
“In terms of commodity prices, have there been taxpayers who have asked for their contributions to be reduced? We can say yes,” Zurio said during a press conference on the state budget on Friday (November 8, 2023).
In fact, the impact of the weakening commodity prices on tax payments was indeed visible from the fulfillment of income tax payments until July 2023, which rose only 24.2% compared to July 2022, an increase of 132. 4%.
“So it’s a little lower than last year. This shows the impact of lower commodity prices on the PPh Article 25 fields,” Surio said.
By sector, the growth in tax payments for the manufacturing sector or manufacturing and trade experienced the largest decline compared to the same period last year. So is mining.
Tax payments of the manufacturing industry until July 2023 increased by only 6.1%, while in the same period last year they amounted to 52.3%. Trade rose 6.2% from 72.5%, while mining rose only 44% from a record 263.7% until July 2022.
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