Gerindra Denies Attacking PDIP On 12 Percent VAT Increase

Secretary General (Sekjen) of the Gerindra Party Ahmad Muzani (center) at the Parliament Complex, Senayan, Jakarta, Monday (23/12/2024). (ANTARA/Through Susthira K.)

JAKARTA - Secretary General (Secretary General) of the Gerindra Party Ahmad Muzani denied that his party was attacking the PDI-P regarding the policy of increasing the value added tax (VAT) by 12 percent which will be implemented starting January 2025.

"No, no. I read everything," said Muzani, Monday, December 23.

He said several statements issued by his cadres regarding this matter only emphasized that the policy to increase VAT to 12 percent was the mandate of the Law on Harmonization of Tax Regulations (UU HPP) as a collective legislation product.

"Friends of Gerindra want to say that this is a law that is also mutually approved, initiated together, not then as if consent is together, then the impression is ... Yes, this is a product together, you know," he said.

However, he appreciates the PDIP's stance on the policy of increasing VAT 12 percent as of January 1, 2025 as a normal view.

"If you want to give your view, just look at it. I think so. No, no (attack)," he said.

He then explained the process of discussing the HPP Law which became the basis for regulating the increase in VAT of 12 percent, which when it began to be discussed in 2021 the world situation was currently in the COVID-19 pandemic.

Therefore, the DPR together with the government are thinking about improving state revenue sources.

"One of the sources of revenue is to increase the tax revenue sector from VAT. The DPR and the government at that time in 2021 discussed the possibility of receiving VAT sourced from the community, from 10 percent, to 11 percent, to 12 percent. The increase was carried out in stages," he explained.

Muzani said the discussion of the HPP Bill finally agreed to be promulgated by parties in Senayan with the government.

"As a party that participated in the Advanced Indonesia Coalition at that time, Gerindra joined together and gave approval. Therefore, we agreed to it and we together with other parties and we agreed to it," he explained.

For this reason, he said President Prabowo Subianto only carried out the mandate of the HPP Law to implement 12 percent VAT by 2025.

"Now Mr. Prabowo is president. As an obligation to the law that has been decided, the government's obligation is to implement the law," he said, quoted by ANTARA.

The chairman of the MPR considered the polemic that emerged in the public over the policy of increasing VAT 12 percent in 2025 as part of the democratic process. "Now we have met protests, even party friends who agreed to now participate in questioning and so on. I think it's a democratic process, something normal,

Muzani said President Prabowo accepted all the views, criticisms, and suggestions that developed in the community as a note before making a decision.

"Pak Prabowo understands these objections and later in time he will announce them all, what points must be taken to increase," he said.