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December 4, 2024 | 08:55 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati was reluctant to comment on the certainty of the value-added tax, or VAT, hike. Meanwhile, her subordinates hinted that the government will still implement a 12 percent VAT next year.
After attending a meeting at the Coordinating Ministry for Economic Affairs office, Sri Mulyani remained silent when asked about the VAT. The former World Bank managing director responded briefly before getting into her car. "Just ask Minister Airlangga," she said on Tuesday, December 3, 2024.
There's less than a month before VAT rises from 11 to 12 percent. But the government has yet to announce any plans to postpone it, despite widespread public opposition to the tax hike.
The International Macroeconomic and Financial Expert Staff of the Ministry of Finance, Parjiono, confirmed that the 12 percent VAT rate will still be in effect in 2025. "We are still in the process of moving in this direction, which means it will continue," he said in Jakarta on Tuesday, December 3, 2024.
According to Parjiono, everything has been calculated to maintain the purchasing power of society after the increase. Therefore, there are exceptions for goods subject to VAT. In addition, the government will also provide subsidies or safety nets to strengthen purchasing power. There are also several tax incentives.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is preparing a series of tax incentives. Some of them include relief on luxury goods sales tax (PPnBM) for automobiles, and the plan to extend tax incentives for housing that will be borne by the government or VAT DTP.
Discussions on incentives were held yesterday at the office of the Coordinating Ministry for Economic Affairs. Airlangga stated that the government will announce the certainty of incentives and the 12 percent VAT next week.
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