The 12 Percent VAT Increase Will Be Effective If Accompanied By Covering Tax Leaks

JAKARTA - Saepudin Muhtar's academic assessed that the plan to increase the value added tax (VAT) to 12 percent would be effective if accompanied by efforts to cover tax leaks.

"Actually, apart from that (increased VAT) there are no less important, namely the connection between improving the budget leak system in terms of income must be anticipated," he said as quoted by ANTARA, Monday, December 23.

He gave an example, regional income from the tourism sector such as restaurants still often leaks, because there is no system that records revenue and reporting quickly and accurately.

"When someone is shopping or eating at a restaurant, the tax must be ensured to the government," he said.

According to Gus Udin, when the tax leak can be overcome by the government, both central and regional, it will significantly support government revenue.

It is known, the government has determined that goods and services, which fall into the premium category, are the target of imposing a 12 percent VAT rate.

Minister of Finance (Menkeu) Sri Mulyani said, four categories of premium goods and services affected by VAT of 12 percent are premium foodstuffs such as premium rice, premium fruits, premium meat (examples: wagyu and kobe meat), expensive fish (examples: premium salmon and premium tuna), as well as premium shrimp and crudecea (examples: king crab).

Second, premium education services. In this case, for school fees it reaches hundreds of millions.

Third, premium medical health services. Finally, electricity for household customers is 3,500-6,600 VA.

This categorization is a form of justice from the preparation of fiscal instruments.

The government has also prepared economic stimulus packages for welfare that target six aspects, including households, workers, MSMEs, labor-intensive industries, electric cars and hybrids, and property.