Gapmmi Boss Regarding VAT Tariffs To 12 Percent In 2025: Better To Pursue Compliance

Food and drink (Photo: antara)

JAKARTA - Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman assessed that the plan to increase the value added tax (VAT) to 12 percent needs to be reviewed (reviewed) again.

Adhi said the government should emphasize compliance with taxes itself instead of increasing it. Given, he said, currently compliance with taxes has not reached 100 percent.

"We once talked at an event to the government that 12 percent VAT should be reviewed again. Because the impact is very large on the economy. We are better off pursuing large economic growth so that the government's income through income tax can be good," said Adhi when met after the press conference. Food Ingredients Asia Indonesia at Artotel Gelora Senayan, Jakarta, Monday, August 19.

"The important thing for us, this VAT is to pursue all obey, because if I'm not mistaken, it's only around 60 percent," he continued.

According to Adhi, if compliance with VAT can reach 100 percent, it can increase the country's own income.

"If 100 percent obeys (taxes), automatically the state's income will increase. So, there is no need to go up first," he said.

Moreover, said Adhi, currently there is a matching of the Population Identification Number (NIK) as a Taxpayer Identification Number (NPWP). Thus, paying and depositing taxes is something that must be done.

"Hopefully this can be more obedient because everyone can't avoid it, everyone has to pay taxes. In my opinion, we have to encourage everyone to obey so that the playing field is the same. No one pays and no one does," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government would continue to adjust the value added tax rate (VAT) to 12 percent in 2025 because it had been mandated in the Law on Harmonization of Tax Regulations (UU HPP).

"The law is clear (the VAT rate will increase by 12 percent in 2025)," he told the media crew in Jakarta, Thursday, August 8.

Even so, Airlangga explained that the delay in VAT rates to 12 percent could be done if there were other regulations.

"Unless there are things related to the law (delaying policies). There is (currently) nothing," he explained.