The Minister Of Home Affairs Reminded Local Governments Not To Raise Taxes That Affect Inflation

Minister of Home Affairs (Mendagri) Tito Karnavian chaired the Coordination Meeting for National Religious Holidays (HBKN) for Fasting and Eid al-Fitr 1445 Hijriah, in Jakarta, Monday (4/3/2024). BETWEEN ATARA/Harianto

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian asked all local governments (Pemda) not to increase unnecessary taxes or levies, especially if it burdens the community which has an impact on increasing inflation.

"I gave notes, I forgot the message, please for regional colleagues, in a situation like this, be really careful not to raise unnecessary taxes and levies that will burden the people," said Tito Karnavian at the National Religious Holiday Coordination Meeting (HBKN) Fasting and Eid al-Fitr 1445 Hijriah, in Jakarta, reported by ANTARA, Monday, March 4.

Tito highlighted the importance of local government awareness in setting taxes and levies, especially in situations that can affect inflation and people's welfare.

Tito emphasized that not raising unnecessary taxes or levies would burden the people, especially if it would have an impact on rising inflation.

In addition, Tito also appealed to local governments not to be too oriented towards local revenue (PAD) which has the potential to burden the community. The Minister of Home Affairs said there are areas that are too focused on increasing PAD, without considering its impact on public inflation and welfare.

"For example, sometimes many areas are chasing, trying to catch up to PAD, regional revenue, if PAD is not burdensome for the people, but if it burdens the people, it will result in inflation, please don't take care of it," said Tito.

Tito also highlighted the importance of evaluating the motor vehicle fuel tax (PBBKB), because of its impact on inflation and the economic burden on society. In this context, he invited to jointly reconsider the policy.

"Like earlier, for example, the motor vehicle fuel tax or PBBKB, please re-evaluate the impact," said Tito again.

Tito emphasized this in order to suppress inflation not only in the regions, but nationally, which is targeted to reach 2.5 percent in 2024.