IndiHome Customers Don't Be Surprised, Telkom Increases Service Rates As Of April 2022 Due To 11 Percent VAT

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Telkom Indonesia (Persero)'s IndiHome internet service tariff has increased as a result of the 11 percent Value Added Tax (VAT) policy.

The policy is based on changes to the provisions for the imposition of Value Added Tax (PPN) rates as regulated in Chapter IV Article 7 Paragraph (1) of the Law of the Republic of Indonesia No. 7 of 2021 concerning Harmonization of Tax Regulations, there is a change in the VAT rate to 11 percent which comes into force on April 1 2022.

Telkom's Vice President of Marketing Management E. Kurniawan said that as part of a state-owned enterprise, Telkom complies and complies with government regulations, in this case changing the value of VAT to 11 percent, which will be implemented starting April 1, 2022.

"We ensure that all the benefits received by customers will continue to be improved," Kurniawan said in a press release, quoted Wednesday, April 6.

Furthermore, he explained, Telkom has conducted socialization to all its customers throughout Indonesia through various digital channels ranging from email, sms blast and officially announced on the website related to the 11 percent VAT rate adjustment.

"So, IndiHome customers are not surprised by the change in the 11 percent VAT increase rate, because long ago we communicated it to customers through various official IndiHome digital channels," he said.

Previously, the government officially imposed a Value Added Tax (VAT) rate of 10 percent to 11 percent on April 1, 2022, as mandated by Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU HPP) Article 7.

Head of the Communications and Information Services Bureau, Ministry of Finance, Rahayu Puspasari said the increase in VAT was intended to strengthen the Indonesian economy in the long term and help finance the APBN, especially in the National Economic Recovery (PEN) program including the provision of various incentives in tackling the impact of COVID-19.

However, certain goods and services are still provided with VAT-free facilities or are still not subject to VAT.

Certain goods and services that are still provided with VAT-free facilities include basic necessities, health services, educational services, social services, insurance services, financial services, public transportation services, labor services, vaccines, textbooks and holy books, clean water including connection/installation costs and fixed load costs, electricity, simple flats, flats, hospitals, RSS, construction services for houses of worship and construction services for national disasters, machinery, marine fishery products, livestock, seeds/seeds, animal feed, fish feed, feed ingredients, raw hides and skins, raw materials for silver handicrafts, petroleum, natural gas, geothermal, gold bars and gold granules, weapons/defense equipment, and aerial photography equipment.

Meanwhile, certain goods and certain services that are still not subject to VAT include goods that are objects of regional taxes, services that are objects of regional taxes, money, gold bullion for the benefit of state foreign exchange reserves, securities, religious services, and services provided by the government. government.

"This policy is an integral part of tax reform and fiscal consolidation as the foundation of a more just, optimal and sustainable tax system," said Rahayu.