JAKARTA - The DPR leadership held a meeting with the Ministry of Finance (Kemenkeu) regarding the policy of increasing Value Added Tax (VAT).
The meeting was attended by Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad, Deputy Speaker of the House of Representatives Adies Kadir, Deputy Minister of Finance Suahasil Nazara, Deputy Minister of Finance Thomas Djiwandono, and Deputy Minister of Finance Anggito Abimanyu at the MPR/DPR/DPD RI building, Senayan, Jakarta, Friday, December 6.
Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, said that the meeting continued to coordinate from the results of the hearing with President Prabowo Subianto to determine some items that would not be subject to VAT.
Dasco emphasized that there has been an agreement with the government regarding luxury goods that are subject to an increase in VAT of 12 percent and goods that are not subject to VAT.
"So earlier, we had received VAT on luxury goods which were increased by 12 percent, then the components remained 11 percent, and there were also components that were not subject to VAT at all," he explained.
Dasco explained that there are goods that are not subject to an increase in VAT, namely food staples, MSMEs, transportation, education and health, financial services and insurance, electricity, and clean water.
"So what is not worn is, such as from foodstuffs, then MSMEs, then transportation, education and health, financial services and insurance, electricity and clean water (under) 6,600. It is not subject to VAT," he said.
"So there are those who get VAT on luxury goods, some are still 11 percent and there are items that we just said that we didn't get VAT at all," he added.
Meanwhile, for luxury goods that will be subject to a 12 percent VAT rate, namely those that have become the object of the Sales Tax on Luxury Goods (PPnBM) which is regulated in PP Number 61/2020, PMK Number 42/2022, and PMK 15/2023.
Dasco emphasized that the results of the agreement were the result of coordination with the government regarding luxury goods that could be expanded so that the VAT rate was 12 percent and the rest would still be subject to an 11 percent VAT rate.
"We have coordinated between the government and the DPR, hopefully what was discussed earlier, which VAT is worn by luxury goods, which is still 11 percent, and which ones are excluded, which are not collected at all, that can be released by the government," he said.
Even so, Dasco reiterated that the certainty of the implementation of the 12 percent VAT increase in 2025 will be submitted to the government.
"(The implementation on January 1, 2025) depends on which one is fixed by the government, that will be announced by the government. We'll see later January 1, 2025," he explained.
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According to Dasco, the government does not need to revise Law Number 7/2021 concerning Harmonization of Tax Regulations (UU HPP) regarding the change of schemes from single tariffs to multi tariffs.
"Actually, it's not necessary because the increase is a range between 5-15, right," he said.
Therefore, Dasco said that the government only needs to issue a Government Regulation (PP) to regulate goods/services that are exempted from the VAT rate of 12 percent.
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