Regarding PDIP Rejecting VAT 12 Percent, Democrats: That's Just Political

Chairman of the DPP Democratic Party Herman Khaeron who is also Deputy Chair of the DPR RI State Financial Accountability Agency (BAKN) assessed that the PDI-P (PDIP) rejection of the value added tax (VAT) policy to 12 percent was only political.

Because, he said, PDIP also approved Draft Law Number 7 of 2021 or Law on Harmonization of Tax Regulations (RUU HPP) which regulates an increase in VAT of 12 percent into law in 2021.

"In my opinion, it's just political, yes, because if you look back, yes, including friends from PDIP, they actually agree," said Hero, his nickname, at the Parliament Complex, Senayan, Jakarta, Tuesday, December 24, which was confiscated by Antara.

He also said that he did not want to look for scapegoats for the 12 percent increase in VAT policy because the HPP Law was a legislative product that had been agreed upon by the DPR and the government.

"I don't want to find a definite scapegoat that this is a law that has been decided at the DPR building, the government, and the DPR," he said.

For this reason, he assessed that what should be debated at this time is not agreeing or rejecting the policy, but how to mitigate and make it effective to increase VAT by 12 percent on pro-people programs.

"This is important in my opinion, so that we can really work together to strengthen the state fiscal because we get additional income, but on the other hand we also strengthen the economic foundation in certain circles so that we can do better economic development in the future," he said.

He also assessed that the implementation of the increase in VAT only for the category of luxury goods had become part of the government's planning to minimize the impact of the 12 percent increase in VAT.

"I think this is already on the track, Pak Prabowo with a plan to only treat people who are capable and then shift, strengthen, against development or pro-people programs," said the member of Commission VI of the DPR RI.