PKB Values Prabowo Is Wise Because It Applies 12 Percent VAT Tariffs Only For Luxury Goods

Hanif Dhabiri/DOK VIA BETWEEN

JAKARTA - Deputy Chairperson of the PKB DPP Hanif Dhakiri assessed that President Prabowo Subianto took wise steps by limiting the increase in VAT rates of 12 percent to only apply to luxury goods. Therefore, this policy does not burden the basic needs of the community.

This step is considered a solution in the midst of President Prabowo's obligation to carry out the mandate of the Law on Harmonization of Tax Regulations (UU HPP), which was ratified on October 7, 2021 by the government and the DPR for the 2019-2024 period.

Where the stages of implementing the VAT increase are regulated in stages. VAT rates rose from 10 percent to 11 percent on April 1, 2022, and are scheduled to rise again to 12 percent starting January 1, 2025.

"President Prabowo shows a real concern for the people by ensuring that this policy does not suppress people's purchasing power, especially the lower middle class," said Hanif Dharmaki to reporters, Monday, December 23.

Therefore, the Deputy Chairman of Commission XI of the DPR also asked all parties, especially parties in the DPR who had previously approved the HPP Law to be consistent and fair in providing information and explanations to the public.

"No one should take advantage of this 12 percent VAT issue as a tool to attack President Prabowo. In fact, President Prabowo is in a position to implement laws inherited from the previous government," he said.

Hanif also noted to the Ministry of Finance to be careful in formulating the category of luxury goods worn by VAT of 12 percent. According to him, the definition of luxury goods must be made very carefully and precisely so as not to target the lower middle class.

"The purchasing power of the people must remain a top priority in implementing this policy. That is also what I believe is the concern of the President," he said.

The former Minister of Manpower of the Republic of Indonesia 2014-2019 also encouraged the Ministry of Finance to be more creative and innovative in finding other sources of state revenue without burdening the community. Such as expanding the tax base, increasing tax collection efficiency, as well as optimizing tax digitization.

"The most important thing right now is the cooperation of all parties to ensure this policy runs well, is fair, and in accordance with its goals, namely supporting development without burdening the small community," he explained.