Chairman Of DPD Asks Parties To Object 12 Percent VAT To Submit Judicial Review To MK

Illustration. Officers serve taxpayers at the Jakarta Pratama Tax Service Office, Tanah Abang Dua, Wednesday, November 21, 2018. (ANTARA PHOTO-Sigid Kurniawan)

JAKARTA - Chairman of the Regional Representative Council (DPD) of the Republic of Indonesia, Sultan B Najamuddin, suggested that parties who objected to the increase in value added tax (VAT) to 12 percent submit a judicial review (JR) against the Law on Harmonization of Tax Regulations (HPP) to the Constitutional Court (MK).

"In order to be fairer and not only blame the government, we recommend that the HPP Law be challenged to the Constitutional Court. That is a constitutional solution that I think is quite fair", Najamuddin told reporters, Monday, December 23.

On the other hand, the former chairman of HIPMI Bengkulu agreed with the imposition of 12 percent VAT on certain products which took effect on January 1, 2025.

In this context, he said, the government has worked hard to investigate it with a more friendly approach to the community.

"We must admit that taxes that are considered too high are social and economic issues that must be watched out for by the government. Therefore, from the start we proposed that this policy be postponed until economic growth and people's purchasing power recover", he said.

It is known, the policy of increasing VAT to 12 percent has drawn rejection from various parties. The basis for the government to increase VAT is Law Number 7 of 2021 or Law on Harmonization of Tax Regulations (HPP).