Implementation Of 12 Percent VAT On Luxury Goods, Economists Reveal To Burden Entrepreneurs And The Complexity Of The VAT System

Pic : Illustration (Photo: Doc Antara)

JAKARTA - Tax observer from the Center for Indonesia Taxation Analysis (CITA) Fajry Akbar assesses that if the 12 percent increase in Value Added Tax (VAT) is only for luxury goods, it will create complexity in the VAT system and uncertainty for business actors.

"If the multi-rate policy applies to luxury goods, not only the object of the Sales Tax on Luxury Goods (PPnBM), this will create complexity in the VAT system. In the field, there will certainly be an increase in the dispute," he said in his statement, quoted on Sunday, December 8.

According to Fajry, the increase in VAT rates only for luxury goods groups will only create uncertainty for business actors. In fact, the implementation of the increase is less than a month away, so business actors need to be prepared.

"Seharusnya, dengan rentaran waktu yang singkat ini, pemerintah tidak lagi beropini tapi mengeluarkan kebijakan yang pasti dijalankan. Putarkan aturansinya baru bicara," tegasnya.

Furthermore, Fajry said that if you look at the complaints of business actors, the most complained about is actually business uncertainty as in tax policies compared to the amount of tax burdens.

"Conditions like this, I am afraid it will have a negative impact on the business world and investment," he said.

He also considered that the government also seemed inconsistent because previously, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that he would provide incentives for automotive PPnBM.

"Of course, this adds to the confusion of business actors, especially those who are directly affected," he explained.

In addition, Fajry said that the government must also define these luxury items in regulations and which goods will increase. "This will mine the nervousness and uncertainty of business actors," he said.

According to Fajry, rather than the government, imposing a tariff increase only on luxury goods objects, it is better if it cancels the increase in VAT rates or is imposed in general.

"Of course, if the tariff increase option is generally carried out, it is necessary to anticipate both from increasing social protection and controlling inflation," he said.