Kadin Positive Response To VAT 12 Percent Of Luxury Goods: Encourage Sustainability Of Inclusive Economic Growth

Ketum Kadin Arsjad Rasjid/ANTARA/HO

JAKARTA - President Prabowo Subianto ensured that the government's decision regarding the Value Added Tax (VAT) of 12 percent was imposed specifically on luxury goods and services.

This means that apart from these goods, the amount of VAT rates for goods and other services is still in accordance with the tariffs in effect since 2022, which is 11 percent.

Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid said the increase in VAT to 12 percent for luxury goods consumed by the upper class, as stipulated in PMK Number 131 of 2024, is a strategic step that will be able to maintain the stability of the purchasing power of the middle class.

"This policy also provides space for the national industry to remain competitive as well as encourage the sustainability of inclusive economic growth," said Arsjad in a statement, Saturday, January 4.

Meanwhile, Deputy Chairperson of the Fiscal and Public Policy Division of the Indonesian Chamber of Commerce and Industry Suryadi Sasminta said that all entrepreneurs who have already implemented the 12 percent VAT rate can return 1 percent of the overtax to buyers, based on implementing regulations which are currently still being drafted by the government.

"In its implementation, entrepreneurs understand and fully understand the change in the procedures for calculating and making invoices as stipulated in PMK Number 131 of 2024. We also express our appreciation to the government for giving the transition period for the next three months to prepare," he said.

Arsjad explained that the business world realizes that state revenue through taxes is becoming increasingly important, especially in order to achieve the economic growth target towards 8 percent.

Therefore, the Indonesian Chamber of Commerce and Industry as a partner of the government together with all industrial associations, is ready to jointly review and realize the creation of efficient and effective taxation policies in supporting the achievement of national economic growth targets.

Previously, the government officially issued regulations related to the 12 percent VAT policy in 2025 specifically for luxury goods. This is stated in the Minister of Finance Regulation (PMK) Number 131 of 2024.

In these regulations, apart from luxury goods, goods and services will be subject to VAT at an effective rate of 11 percent through the DPP Value Other mechanism.

"That in order to realize the aspect of justice in society, policies need to be issued in the application of Value Added Tax rates," he wrote in the regulation, quoted Thursday, January 2.

The 12 percent VAT tariff scheme in this regulation is divided into two, namely first using the basis for imposition of taxes (DPP) in the form of selling prices or import values, while the second is in the form of other values.

In addition, the VAT rate of 12 percent will be imposed on imports of Taxable Goods (BKP) and/or the submission of BKP within the Customs Area, the use of BKP is not realized from abroad in the country and the utilization of Taxable Services (JKP) from abroad. domestic.

Then, this PMK regulates other values that can be used as a basis for imposition of taxes (DPP) in certain situations, such as luxury goods.

Meanwhile, for BKPs that are not classified as luxury goods, the scheme for imposing VATs that are owed is calculated by multiplying the 12 percent tariff with the DPP in the form of other values. The other value is calculated at 11/12 of the import value, selling price or replacement of goods/services.

In addition, this regulation also regulates special provisions for Taxable Entrepreneurs (PKP) who submit BKPs, which are classified as final consumers.