2 hours ago
5
November 27, 2024 | 01:02 pm
TEMPO.CO, Jakarta - Chair of the National Economic Council Luhut Binsar Pandjaitan has responded to the public outcry over the planned implementation of a 12% Value Added Tax (VAT) on January 1, 2025. He emphasized that President Prabowo Subianto is committed to avoiding additional burdens on the people.
“Essentially, the President doesn't want to burden the people,” Luhut said to the media in East Kuningan, South Jakarta, on Wednesday, November 27, 2024.
Luhut attributed the public's negative reaction to a lack of understanding of the VAT structure and mechanism. He confirmed that the government will continue to discuss the plan for the tax increase.
“People don't understand the structure yet,” he said.
He further clarified that the decision regarding the VAT is still pending a final directive from President Prabowo. “It's almost certain to be postponed,” he added.
He revealed that the government plans to provide economic stimulus to the public one to two months prior to the VAT implementation. He mentioned that the government is currently calculating the amount of this stimulus.
“Before that (the 12% VAT) is implemented, we will provide economic stimulus to the people,” he said.
The Indonesian Chamber of Commerce and Industry (Kadin) has also expressed concerns about the 12% VAT plan. Kadin Chairman Arsjad Rasjid urged the government to review the plan.
“The timing isn't right. It's not just about the 12% rate,” Rasjid told the media in Prapanca, South Jakarta, on Tuesday, November 26, 2024.
Editor's Choice: Indonesian Govt Criticized for Lack of Transparency on 12 Percent VAT
Click here to get the latest news updates from Tempo on Google News
Prabowo on Regional Elections: Winners Must Embrace Losers and Serve People
1 jam lalu
President Prabowo Subianto has called on the winners of the simultaneous Regional Head Elections 2024 to embrace those who lost.
Bawaslu Jakarta Investigates Prabowo's Support Letter for Ridwan Kamil-Suswono
2 jam lalu
The Jakarta Election Supervisory Agency (Bawaslu Jakarta) is investigating a support letter from Prabowo for candidate pair Ridwan Kamil and Suswono.
The Danger of Jokowi's Intervention in Regional Elections
17 jam lalu
Jokowi is backing a number of candidates in the regional elections, including in Jakarta and Central Java.
Prabowo's Govt Gears up for 2024 Christmas and New Year Holiday
20 jam lalu
The peak of the Christmas and New Year homecoming flow is expected to occur on December 24, 2024.
Prabowo Approves of Plastic Waste Import Ban, Ministry Claims
21 jam lalu
Minister Hanif emphasized that waste imports must be halted considering the burden it adds to the country's waste management problems.
2025 Minimum Wage: Prabowo's Govt Cornered Between Workers' Demands and Employers' Suggestions
1 hari lalu
Observers suggest that 2025 minimum wage should consider the variables of decent living needs (KHL), inflation, and economic growth.
Free Meal Program to Run in 932 Locations: Nutrition Agency
1 hari lalu
The free meal program is intended to address some critical issues the country currently faces.
Prabowo's Govt Mulls Drafting Law on Foreign Prisoner Transfer
1 hari lalu
The plan to draft a prisoner transfer law arises as President Prabowo has been asked for approval for the transfer of Bali Nine to their home country.
Top 10 Countries with the Best Doctors in the World, India Included
1 hari lalu
Countries with the best doctors often have more accessible and efficient healthcare systems. Let's find out about them.
Prabowo Gathers Several Ministers at Palace to Discuss 2025 Minimum Wage
1 hari lalu
President Prabowo gathered several ministers at the Presidential Palace in Jakarta for an internal meeting.
