Shopping Center Entrepreneurs Ask The Government To Postpone The Implementation Of VAT 12 Percent

Chairman of the DPP Indonesian Shopping Center Management Association Alphonzus Widjaja. (Photo: Mery Handayani/VOI)

JAKARTA - The Indonesian Shopping Center Management Association (APPBI) asked the government to postpone the increase in value added tax (VAT) to 12 percent.

Currently, the VAT imposed is 11 percent.

Chairman of the APPBI DPP Alphonzus Widjaja said the request was not without reason.

He said the implementation of the 12 percent VAT increase would have an impact on selling power.

"The problem with the increase in VAT is 12 percent, we hope that the government will also postpone it because the increase in VAT will have an impact on selling prices," he said at the Ministry of Trade, Jakarta, Tuesday, July 30.

Aphonzus said that when prices rise, the most affected is the lower middle class. As a result, it will reduce people's purchasing power.

For those in the upper middle class, it's relatively small. But for the lower middle class it will be felt very much. In the end, it is reducing purchasing power. If this is implemented, all of this will make the situation even more unhealthy," he said.

In addition to having an impact on the purchasing power of the lower middle class, said Alphonzus, the implementation of VAT 12 percent will make it difficult for entrepreneurs.

"Buy goods are decreasing, transactions are decreasing, sales are down, it will make it even more difficult for business actors," he said.

Alphonzus assessed that the current VAT in Indonesia is also low when compared to other countries.

Therefore, the implementation of VAT to 12 percent will actually disrupt people's purchasing power.

Our VAT rate is not very low compared to neighboring countries. This (this is applied) will disrupt the purchasing power of the lower middle class. Because the current growth is not optimal. So first encourage the growth as much as possible, then play the tariff," he said.