The Director General of Taxes, Bimo Wijayanto, has confirmed that there will be no increase in Value Added Tax (VAT) rates to boost state revenue under the leadership of Finance Minister Suahasil Nazara.

The statement was made on Friday, September 18, 2026, in response to questions about the possibility of an increase in tax rates.

Meanwhile, tax revenue as of August 2026 reached IDR 1,409.9 trillion, representing a 24.1% increase compared to the corresponding period. This figure accounts for 59.8% of the 2026 tax revenue target of IDR 2,357.7 trillion.

The revenue was primarily contributed by:

• Non-oil and gas Income Tax (PPh): IDR 722.2 trillion, up 16.6%.
• Oil and gas Income Tax (PPh): IDR 39 trillion, up 63.8%.
• VAT and Luxury Goods Sales Tax (PPnBM): IDR 591.5 trillion, up 38.9%.
• Land and Building Tax (PBB) and other taxes: IDR 56.4 trillion, down 15.7%.

The increase in VAT and Luxury Goods Sales Tax revenue was partly supported by strong domestic consumption. Economic activities involving electricity demand, cement, cars, and motorcycles also showed growth.

However, the government still projects that tax revenue in 2026 may fall short of its target. Tax revenue is estimated to reach approximately IDR 2,310.8 trillion, or around 98% of the target. This could result in a potential shortfall of approximately IDR 46.9 trillion.

For businesses and taxpayers, the confirmation regarding VAT rates provides important information amid ongoing discussions about tax revenue and economic performance. Staying informed about tax policies and their developments remains essential for effective tax planning and compliance.

Source: NewsDDTC / Bisnis.com, as presented in the provided PDF.