12 Percent VAT Postponement Option In 2025 Open, But The Government Has Not Asked For Consultation Meetings With The DPR
Member of Commission XI from the Gerindra Party faction Kamrussamad said the government had not asked for a consultation meeting with Commission XI of the DPR regarding the option of delaying the increase in Value Added Tax Rates (VAT) to 12 percent by 2025.
To note, the increase policy is contained in Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP) in Article 7 paragraph (1), the 12 percent VAT rate is valid no later than January 1, 2025, after the increase in VAT rates from 10 percent to 11 percent in April 2022.
Therefore, if the government wants to postpone the increase in VAT by 2025, it can be by issuing a government regulation in lieu of the law (Perpu) or by Government Regulation (PP), but before issuing it, the government must hold a consultation meeting with the DPR.
Kamrussamad explained that until now there has been no request for a consultation meeting by the government even though the DPR will start conducting a recess next week until January 16, 2025.
"There has been no formal discussion yet. We will have a recess next week," he told the media crew when met in the area of the Coordinating Ministry for the Economy Office, Jakarta, quoted Wednesday, December 4.
Kamrussamad said the 12 percent increase in VAT by 2025 had been mandated in the HPP Law which had been in effect since 2021 and was agreed upon by the government and the majority of factions in Commission XI of the DPR.
"Because Commission XI drafted the HPP Law, the committee was led by the ruling party at that time, so the position standing is clearly in accordance with the current law," he explained.
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However, Kamrussamad said there was a possibility of an option to hold a consultation meeting during the recess if the DPR leadership approved it.
However, he estimates that the government will remain consistent with the increase in VAT to 12 percent by 2025.
"Never, because I think we are consistent in accordance with the HPP Law," he explained.