Faisal Basri Hopes Prabowo Delays The Implementation Of VAT 12 Percent In 2025: Only One Year's Breath Of People

Senior Economist Indef Faisal Basri. (Photo: Theresia Agatha/VOI)

JAKARTA - The government will adjust the value added tax rate (VAT) to 12 percent next year.

This is in accordance with the Law on Harmonization of Tax Regulations (UU HPP).

Responding to this, Senior Economist Indef Faisal Basri assessed that President-elect Prabowo Subianto should postpone the implementation of the tax.

Ideally, he said, Prabowo's implementation of 12 percent VAT was carried out after a year of serving as the number one person in Indonesia.

"So, for example, he (Prabowo Subianto) should issue an executive order. One way, for example, I will postpone it until 2026, I will give my first year to serve the people," said Faisal to reporters in Jakarta, Wednesday, August 21.

"Most of them don't add to the burden on the people. Right, that's what I thought," he continued.

Faisal assessed that Prabowo as the elected president should be able to give sweet gifts to the public for his 100 days of leadership.

"A year alone there is breath, so it is hoped that in a year his (Prabowo) programs, which are already profitable. Only then (implement the VAT rate of 12 percent)," he said.

According to Faisal, if he has been inaugurated as President in 2024-2029, then Prabowo has the full authority to postpone or continue to implement taxes by 12 percent in 2025.

"Yes, he hasn't planted anything, how about it? Just plant it yet. Yes, it's practical right. The spirit is executive order (via) Presidential Regulation (presidential regulation) or Perppu (government regulation to replace the law) if necessary," he added.