Sri Mulyani Reveals The Implementation Of 12 Percent VAT Continues To Carry Out The Principles Of Justice

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. ANTARA)

JAKARTA - Finance Minister Sri Mulyani Indrawati finally opened her voice regarding the 12 percent increase in Value Added Tax (VAT) in 2025 only for luxury goods.

Sri Mulyani emphasized that in implementing the Law (UU), it must maintain the principle of justice, including in the government's tax policies. Even though its implementation is not always perfect, the government is committed to continuing to strive to improve it for the welfare of the community.

In the context of implementing the Tax Regulation Harmonization Law (HPP), Sri Mulyani explained that policies related to Value Added Tax (VAT) which reached 12 percent still prioritize the principle of justice.

"We are formulating in more detail because this is a consequence of the state budget, in terms of justice, purchasing power and in terms of economic growth, we need to balance it. Some directions and in this case, we are having moderate and continuous discussions, this is in the finalization stage," said Sri Mulyani at the State Budget press conference. KITA, Wednesday, December 11.

However, Sri Mulyani confirmed that she would immediately announce it with the Coordinating Minister for Economic Affairs Airlangga Hartarto regarding the entire package, not only regarding VAT 12 percent.

"So far, the implementation in implementing the Law, including for VAT, has and continues to give partiality to the wider community for goods and services that have an impact on the wider community," he said.

Sri Mulyani also emphasized that although the implementation of the VAT Law regulates the current 11 percent tariff, the government continues to provide protection to the public by ensuring that a number of basic necessities and goods remain free from VAT.

"Many goods and services include basic necessities such as fresh milk egg meat rice consumption of health services for public transportation services for insurance services financial services, sales of simple home vaccination books and flats using drinking water electricity are not collected by VAT. So the VAT is 0 percent," explained Sri Mulyani.