1 month ago
41
December 6, 2024 | 10:32 am
GOOTO.COM, Jakarta - Indonesian President Prabowo Subianto has approved a limited increase in Value Added Tax (VAT) from 11% to 12%, which will be effective January 1, 2025. This decision was announced by the Chair of the House of Representatives (DPR) Commission XI, Mukhamad Misbakhun, after a meeting on VAT between the president and House leaders at the Jakarta Presidential Palace on Thursday, December 5, 2024.
Misbakhun stated that the parliament would adhere to the laws governing this VAT increase. He also emphasized that the 12 percent VAT would only apply to specific commodities, encompassing both domestic and imported luxury goods.
“The government will implement a 12% VAT for consumers purchasing luxury goods. The current VAT rate will remain in effect [for essential goods and services for the general public],” Misbakhun stated.
Deputy Speaker of the DPR, Sufmi Dasco Ahmad, confirmed that essential goods for the public would remain subject to the current 11 percent tax rate. He mentioned that the government is exploring the possibility of reducing taxes on essential goods for the public.
“Currently, a more in-depth study is being conducted where the VAT in the future will not be at the same rate,” Dasco explained.
Furthermore, Minister of State Secretary Prasetyo Hadi explained that the discussions on this VAT increase are a collaborative process aimed at benefiting society. Therefore, a prompt response to this policy is crucial. “So today (Dec. 5) the president, together with the leaders of the DPR, discussed this matter,” he said.
DICKY KURNIAWAN | DANIEL A FAJRI
Editor's Choice: Sri Mulyani Remains Silent on VAT
Click here to get the latest news updates from Tempo on Google News
Today's Top 3 News: Prabowo Invited to High-level State Visits to Kazakhstan, Tajikistan
12 jam lalu
Here is the list of the top 3 news on Tempo English today.
Prabowo Announces Teacher Salary Hike in 2025: Finance Ministry Details
15 jam lalu
President Prabowo recently announced an increase in teacher salaries in 2025. A Finance Ministry official explained the details.
Qatari, Chinese Investors Keen to Invest in Prabowo's Housing Program, Gerindra Politician Claims
17 jam lalu
President Prabowo's housing program will receive funding from Abu Dhabi, Qatar, China, India, and Singapore, Hashim said.
IDX Responds to Prabowo's 'Gambling' Remarks on Stock Trading
18 jam lalu
Prabowo Subianto drew a comparison between stock trading and gambling, highlighting the potential for significant losses.
Prabowo Meets Japanese Entrepreneurs at Presidential Palace Today
18 jam lalu
The Presidential Palace is yet to announce officially the meeting between Prabowo and Japan's entrepreneurs.
Residents Say Majority Still Rejecting Rempang Eco-City Project, Call BP Batam Liar
21 jam lalu
Rempang residents refute BP Batam's claims as "hurtful and deceptive", perceiving them as attempts to intimidate the community.
House Officially Approves KPK Leaders and Supervisory Council for 2024-2029
21 jam lalu
Commission III of the DPR had conducted the fit and proper test for 10 candidates each of the KPK leaders and KPK supervisory council.
Prabowo Invited to High-level State Visits to Kazakhstan, Tajikistan
1 hari lalu
President Prabowo Subianto is invited to Kazakhstan and Tajikistan to conduct a high-level state visit.
UAE Hopes for Continued Strong Ties with Indonesia Under President Prabowo Subianto
1 hari lalu
UAE Ambassador to Indonesia expressed enthusiasm for the burgeoning strategic partnership between the UAE and Indonesia.
Sri Mulyani Remains Silent on VAT
1 hari lalu
Sri Mulyani is reluctant to comment on the VAT increase, but her subordinates indicate that the tax hike will remain unchanged.
