Regarding VAT 12 Percent, Minister Of Manpower: People Are Able To Pay More Taxes But Those Who Get Less State Protection

Minister of Manpower Yassierli (Photo: dock. VOI)

JAKARTA - The Minister of Manpower (Menaker) Yassierli ensured that the policy of increasing Value Added Tax (VAT) to 12 percent would not ignore the protection of workers/laborers, especially those in the labor-intensive sector or those affected by layoffs (PHK).

According to him, the government has prepared various programs as a form of mitigation to support the welfare of workers/laborers in the midst of implementing the policy.

"The increase in VAT is part of the national economic policy under the leadership of President Prabowo Subianto who carries the principle of justice. Those who are able will pay more taxes, while the poor will receive full protection from the state," Yassierli said, quoting Antara.

For workers in the labor-intensive sector, he said, the government provides incentives in the form of Income Tax (PPh) Article 21 Borne by the Government (DTP) for workers with an income of up to IDR 10 million per month.

In addition, the Work Accident Insurance (JKK) contribution borne by BPJS Ketenagakerjaan was also discounted at 50 percent for six months to ease the burden on companies and workers.

Furthermore, the government offers support through the Job Loss Guarantee (JKP) program for workers who are laid off. This program includes cash benefits of 60 percent flat from wages for five months, training worth IDR 2.4 million, and easy access to the Pre-Employment Program.

"We want to ensure that workers who have lost their jobs still have the purchasing power and the opportunity to improve their skills," said Yassierli.

According to the Minister of Manpower, this policy is part of the government's strategy to improve people's welfare in the midst of global economic challenges.

With this step, the government seeks to maintain a balance between collecting state revenues and social protection, so that the impact of economic policies can be felt fairly by all levels of society.

"So we want to ensure that the government not only focuses on state revenue through taxes, but also ensures that every policy taken remains in favor of workers and laborers," he said.