Carbon Tax To 12 Percent VAT, Airlangga: Will Be Discussed In The State Budget

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the implementation of the carbon tax and packaged packaged sugar excise (MBDK) which is one of the main focuses of taxation policies in the next government Prabowo-Gibran will still be explored by the relevant ministries/agencies (K/L).

"We are still investigating the carbon, we will also see the excise duty at the end of the year," he explained to reporters at his office, in Jakarta, Tuesday, April 23.

Previously, President Joko Widodo (Jokowi) had included the receipt of the MBDK's plastic excise and excise components in the 2024 State Revenue and Expenditure Budget (APBN).

Meanwhile, the decision is contained in Presidential Regulation (Perpres) No. 76/2023 concerning Details of the State Revenue and Expenditure Budget for Fiscal Year 2024 which was promulgated at the end of November 2023.

On the other hand, the target for plastic excise is IDR 1.85 trillion and the MBDK excise is IDR 4.39, so the revenue target targeted from the plastic excise and excise duty of the MBDK reaches IDR 6.24 trillion.

Airlangga added that the 12 percent increase in Value Added Tax (VAT) next year has been set since 2021.

The stipulation has been mandated in the Law on Harmonization of Tax Regulations (HPP).

However, Airlangga has not been able to reveal in more detail when the implementation of the policy will be implemented.

"That too (VAT 12 percent) we will discuss in the framework of the State Budget. We will discuss it while walking," he explained.

For information, the basis for determining VAT rates is the provisions in Chapter IV article 7 (1) of the HPP Law. This article stipulates that the VAT rate of 11 percent will take effect on April 1, 2022 and 12 percent will take effect no later than January 1, 2025.