Minister of Finance, Sri Mulyani Indrawati, has assured the public that the government will not introduce new taxes in 2026, even as state revenue is projected to rise by 9.8 percent.

The statement was aimed at easing concerns among the public, including those running small and medium enterprises (SMEs).

“Given the many needs of the state, revenue must continue to increase, but without introducing new tax policies,” Sri Mulyani told Committee IV of the Regional Representatives Council (DPD) during a hearing on Monday, September 2, 2025.

Instead of raising tax rates, the government will strengthen tax enforcement and compliance systems.

“The tax regime remains the same, but enforcement and compliance will be improved and streamlined,” she said.

The minister stressed that those capable of paying taxes must comply, while vulnerable groups would continue to receive support.

“State revenue will be safeguarded, but solidarity with weaker groups will also be maintained,” she added.

Sri Mulyani emphasized that SMEs should not worry as enterprises with annual turnover of up to Rp500 million will remain exempted from income tax, while those with Rp500 million–Rp4.8 billion turnover are subject to a final tax rate of 0.5 percent.

She also confirmed that no value-added tax (VAT) will be imposed on health and education services. In addition, individuals earning less than Rp60 million (US$3,600) annually are exempted from tax.

The government, she noted, will continue to uphold principles of fairness, sound governance, and sustainable financing.

“We will keep the deficit measured so it can still support, stimulate, and expand the economy,” she said.

Under the draft 2026 state budget (RAPBN), government revenue is targeted at Rp3,147.7 trillion, with expenditure set at Rp3,786.5 trillion. The 2026 budget deficit is projected at Rp638.8 trillion, or 2.48 percent of gross domestic product (GDP).