Good News For Mothers, Gold Bar And Jewelry Prices Are Free Of 11 Percent VAT Increase

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) has officially imposed a new tax rate for Value Added Tax (VAT) to 11 percent.

In a press conference held that day, the Director of Tax Regulations I of the Ministry of Finance Hestu Yoga Saksama said that several items were exempted, such as gold bullion and granulated gold. This is in accordance with Law number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP).

"The tax exemption facility for gold bars and granules is intended to support increasing national gold production," he said via an online channel, Friday, April 1.

According to Yoga, the same facilities will also apply in the form of gold jewelry and the like.

"This is good for increasing our competitiveness with other countries," he said.

For information, the granting of this exemption indicates that the government wants to continue to encourage the manufacturing industry to continue to develop so that the downstream process in the mining sector will continue to develop. Meanwhile, the previous VAT rate was 10 percent.

The policy to increase VAT is part of a strategic step to improve the state budget ahead of the 3 percent budget deficit in 2023.