VAT 12 Percent Only For Luxury Goods, PKS: Wise Steps To Keep Purchasing Power

JAKARTA The Prosperous Justice Party (PKS) welcomes the government's policy of increasing the Value Added Tax (VAT) rate by 12 percent only for luxury goods.

PKS considers this step appropriate because it provides a sense of justice for the community while maintaining the purchasing power of the lower middle class in the midst of current economic challenges.

PKS President Ahmad Syaikhu said this policy reflected the side of President Prabowo Subianto's government to the small people.

"This step is very wise. By limiting the increase in VAT to only luxury goods, the government protects people's purchasing power and maintains economic stability, as well as provides a sense of justice for the lower class," said Syaikhu in an official statement received on Wednesday, January 1.

Syaikhu also emphasized the importance of implementing incentive programs aimed at supporting people's purchasing power. According to him, programs such as social assistance, electricity subsidies, and tax incentives for workers and MSMEs need to be carried out continuously.

"This is the key to ensuring the welfare of the community is maintained," he said.

In line with Syaikhu, Deputy Chairman of the House of Representatives (DPR) Cucun Ahmad Syamsurijal also praised this policy. He assessed that the implementation of the 12 percent VAT rate for luxury goods such as private jets, cruise ships, and high-value properties provides a sense of justice.

This policy evokes a sense of justice. What is unfair is that if owners of luxury goods, such as private jets and luxury homes, are taxed the same as those who own motorbikes," said Cucun.

He also added that this policy supports domestic industry players to continue to grow without burdening the lower class by increasing the price of basic necessities or non-luxury services.

The implementation of the VAT rate increase is considered as a strategic step that supports economic equality. Taxes on luxury goods are reasonable to increase because consumers of these goods come from people who have high economic capacity.

In the midst of uncertain global economic conditions, stability of tax rates for daily necessities is important so that domestic industries can maintain competitiveness, as well as avoid the domino effect of price increases that can burden the lower middle class.