TKN Prabowo-Gibran Umbar Promises To Lower VAT In 2025

National Campaign Team Expert Council (TKN) Prabowo-Gibran for Taxation and State Revenue Edy Slamet Irianto (right)/ANTARA

JAKARTA - The Expert Board of the National Campaign Team (TKN) Prabowo Subianto-Gibran Rakabuming Raka for Taxation and State Revenue Edy Slamet Irianto said the pair number 2 planned to lower the value added tax rate (VAT) if they won the 2024 presidential election.

According to Edy, the reduction in VAT rates will be carried out in 2025 in order to increase people's purchasing power.

"It is possible that in 2025 we will reduce the tariff for VAT which is now 11 percent, although according to the law it will increase by 12 percent. This is to expand the ability to buy from the public," said Edy in a discussion on "The Arrah of the Prabowo-Gibran Tax Policy on Young Entrepreneurs" at the Fanta HQ Headquarters, Jakarta, reported by ANTARA, Thursday, January 4.

He said the policy of reducing VAT would increase tax revenues because there would be an increase in the quantity of purchases in the community.

"So sales, purchases, the more quantity so that we will get taxes from there, from a lot of quantities, the volume," he said.

Along with that, Prabowo-Gibran also plans to provide convenience and also reduce tax rates that are considered burdensome to people's purchasing power by adjusting tax pay obligations depending on the size of taxpayer income.

"We will also continue to enforce tax justice. So the big one must also pay taxes in accordance with the provisions of the law, the small one must pay a small tax," said Edy.

Edy said another policy that Prabowo-Gibran planned was income tax exemption (PPh) within a certain period of time for Micro, Small and Medium Enterprises (MSMEs) who had just started to provide opportunities to develop their business.

"So we will continue to strive so that this economy grows through tax policies that are deemed necessary and can encourage economic activity and growth," he said.