Golkar PDIP Value 'Mencla-mencle' Regarding 12 Percent VAT Increase

Chairman of Commission XI DPR RI from the Golkar Party faction Mukhamad Misbakhun. (ANTARA/HO-DPR RI)

JAKARTA - Chairman of Commission XI of the DPR RI from the Golkar faction, Mukhamad Misbakhun, said that the PDI-P (PDIP) was declaring about the policy of increasing the value added tax (VAT) to 12 percent which took effect on January 1, 2025.

"Political attitudes to declare the PDI-P like this must be known by many Indonesian people. When in power what to say, when they are not part of power as if they are at the forefront of voicing the interests of the people. Be political elegantly," said Misbakhun in a statement received in Jakarta, Monday.

This was conveyed by Misbakhun in response to the PDIP's stance which voiced that the policy of increasing VAT to 12 percent was canceled by the government.

"For that, if at this time there is a political effort behind the direction of the PDI-P by making efforts to reject it, it means that they want to just hang out with the colong playu," he said.

Misbakhun then revealed the role of PDIP in the policy of increasing VAT on the Working Committee (Panja) of the Draft Law on Harmonization of Tax Regulations (HPP) which rolled out during the previous leadership period of the DPR RI.

At that time he was also a member of the Working Committee for the HPP Bill so that he witnessed and learned about the dynamics of the discussion regarding the increase in VAT rates to 12 percent in the bill.

"They were involved in the political process of making the law, even PDI-P cadre Dolfie OFP (Dolfie Othniel Frederic Palit) became the Chair of the Panja for the General Provisions and Tax Procedures Bill (KUP) when the bill was first given a name, then it was approved into the Tax Regulation Harmonization Law (HPP)," he said.

For this reason, he considered that it was not appropriate for the PDIP to wash its hands on the VAT increase policy to 12 percent because everything was contained in Law Number 7 of 2021 concerning HPP which was set in October 2021.

"It is not appropriate for the PDI-P to make political steps to wash their hands as if they were not involved in the political process when discussing the HPP Law which determines the gradual increase in VAT rates from 10 percent to 11 percent on April 1, 2022 and increase again to 12 percent on January 1, 2025," he said.

On the other hand, he stated that the Golkar faction's stance on the previous discussion of the HPP Bill and had proposed tax rates for micro, small and medium enterprises (MSMEs) was actually lowered to 0.5 percent as a form of partiality to the MSME group community.

"The Golkar Party faction was not involved in several lobby meetings in the discussion of the bill because it was considered too much discussion and critical arguments on several important issues in the Problem Inventory List (DIM)," he explained.

According to him, the implementation of the 12 percent increase in VAT on January 1, 2025 is a consequence that must be carried out by the government of President Prabowo Subianto as mandated by the HPP Law.

"As the president elected by the people for the 2024'2029 period, Mr. President Prabowo vowed to carry out the state constitution and carry out the law as straight as possible," he said.

On the other hand, he considered President Prabowo's attitude in imposing a 12 percent VAT increase policy on luxury goods as a wise political moderation.

"That the mandate of the law is still carried out by taking into account all the aspirations of the community and the business world regarding the current economic situation which requires a lot of incentives from the state. For this reason, the Golkar Party always provides support to every directive and political step taken by President Prabowo to be followed and implemented as well as possible," he said.