Chairman Of Banggar DPR Asks The Government To Do 12 Percent VAT Risk Mitigation

Tax illustration (Pixbay)

Chairman of the DPR RI Budget Agency, Said Abdullah, asked the government to carry out risk mitigation on the impact of the increase in Value Added Tax (VAT) from 11 percent to 12 percent, especially for poor and middle class households. Said stated that PDIP supports the policy as a mandate of the Law on Harmonization of Tax Regulations (HPP) as well as the implementation of the 2025 State Budget.

According to Said, there are a number of risk mitigations that the government can realize. First, the government needs to increase the budget for social protection to the people.

"The number of beneficiaries of social welfare is strengthened not only for poor households but also for almost poor/poor people. And ensure that the program is delivered on time and on target," Said said in his statement, Tuesday, December 24.

Second, subsidies for fuel, LPG gas subsidies, electricity subsidies for poor households that are expanded to medium-sized households. Including online motorcycle taxi drivers should still get subsidized fuel filling, even if necessary to reach the lower middle class group.

"Third, public transportation subsidies are expanded, which become a mode of mass transportation in various regions, especially big cities that have mass transportation modes. Fourth, housing subsidies for the lower middle class, at least 45 lower house types, and flats," he explained.

Fifth, the government must strengthen assistance for higher education and scholarships that reach more beneficiaries, especially students who excel from poor to middle households. Sixth, carry out routine market operations at least every two months in order to ensure that inflation is controlled and food commodity prices remain affordable.

Seventh, ensure the use of MSME goods and services within the Government. "Increasing government spending on goods and services, which was previously at least 40 percent, to 50 percent, to use Micro, Small and Cooperative Business products from domestic production," he explained.

Eighth, providing training and economic empowerment programs for the middle class. As well as launching skills training programs and economic empowerment for the affected middle class, to help them switch to more developed and competitive sectors. It can also be synchronized with KUR distribution.

"Nine, ensure that the program to eliminate extreme poverty from its current position is 0.83 percent to zero percent in 2025, and the reduction in stunting generation is below 15 percent from the current position of 21 percent," he concluded.