PDIP Accused Of Being Behind Gerindra About VAT 12 Percent: Their Initiation, Prabowo Only Runs

Deputy Chairman of the DPR Budget Agency, Wihadi Wiyanto (doc. Antara).

JAKARTA - Deputy Chairman of the DPR's Budget Agency (Banggar), Wihadi Wiyanto, revealed Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP) initiated by the PDI-P faction of the DPR. This is the basis for the increase in Value Added Tax (VAT) to 12 percent on January 1, 2025.

"The 12 percent increase in VAT is the decision of the 2021 Law, HPP. (VAT) is 12 percent in 2025, and it is initiated by the PDI-P," Wihadi told reporters, Saturday, December 21, 2024.

"We can see that from the one who led the Panja (Work Committee) even from the PDI-P," he added again.

Meanwhile, Dolfie Onniel Fredric Palit, who is a member of the PDIP faction, became the Chair of the Working Committee (Panja) for the HPP Bill (RUU) during the discussion.

This condition made Wihadi question the PDIP's attitude in criticizing the increase in VAT to 12 percent. For him, the party bearing the bull symbol seemed to corner President Prabowo Subianto.

"Now that the PDI-P has asked for it to be postponed, this is something that actually cornered Prabowo's government. Actually, what wants the increase is the PDI-P," he said.

Wihadi said, Prabowo was actually only carrying out the law. He denied that the current government decided to increase the tax.

"If now there is information or things related to this with Pak Prabowo's government, which seems to decide, it is not true," he said.

"The truth is that this law is a product from the DPR which at that time was initiated by the PDI-P. Now, President Prabowo is only running it," said the member of the Gerindra Party faction in the DPR RI.

Furthermore, Prabowo has also been wise in implementing VAT 12 percent. This increase is claimed only for luxury goods.

"Mr. Prabowo's thinking is that the middle-low class is maintained and its purchasing power and does not cause economic turmoil. This is Pak Prabowo's wise step," said Wihadi.

Previously reported, Member of the House of Representatives from the PDI-P faction, Rieke Diah Pitaloka alias Oneng, conveyed an interruption regarding the plan to increase VAT by 12 percent.

This moment occurred at the 9th Plenary Session of the DPR Period I of the 2024-2025 Session Year at the Parliament Complex, Senayan, Jakarta, Thursday, December 5, 2024.

At that time, Rieke hoped that the leadership of the DPR would participate in urging President Prabowo Subianto to cancel the plan.

"Please support the Speaker of the House of Representatives, Deputy Speaker of the House of Representatives, all members of the DPRD throughout Indonesia, all students behind, and colleagues from the media."

"We give full support to President Prabowo. All of us and all Indonesian people are waiting for President Prabowo's 2025 New Year's gift to cancel the plan to increase VAT 12 percent," said Rieke.

A day later, President Prabowo Subianto emphasized that the increase in VAT to 12 percent was only applied to luxury goods. The VAT increase plan will begin in January 2025.

"VAT is a law, yes, we will implement it. However, selective only for luxury goods," said Prabowo at the Presidential Palace Complex, Jakarta, Friday, December 6, 2024.

He ensured that the government was committed to protecting the small people. According to him, since the end of 2023, the government has no longer collected taxes from a number of commodities.

"So, even if (VAT) goes up, it's just for luxury goods," he said.