Indonesian Government Explores Advance Tax Collection Amid Revenue Shortfall

Considering 'Ijon Pajak' to Bridge Budget Gap

The Indonesian government is contemplating implementing 'ijon pajak' (advance tax collection) in the remaining months of 2025 to address a widening tax revenue shortfall. Finance Minister Purbaya Yudhi Sadewa confirmed that the government is considering this measure, although the exact amount of advance collection has not been determined.

Understanding 'Ijon Pajak'

'Ijon pajak' refers to the practice of requesting taxpayers to pay their next year's tax obligations in advance during the current year. This strategy was previously employed by the Ministry of Finance through the Directorate General of Taxes during 2015-2016 when the country faced a similar tax revenue shortfall.

Implications of Advance Tax Collection

The decision to implement 'ijon pajak' would have significant implications for both the government and taxpayers. For the government, it provides immediate revenue to help bridge the budget gap caused by the shortfall in tax collection. However, it may place additional financial strain on taxpayers who are required to pay their future tax liabilities ahead of schedule.