Jakarta – The government, through the 1% Value Added Tax (VAT) adjustment policy which will come into effect on January 1, 2025, seeks to support national economic recovery and improve public welfare.
According to Minister of Finance (Menkeu) Sri Mulyani Indrawati, this step is part of a grand vision to maintain people’s purchasing power and stimulate the economy through fair and selective tax policies.
In his written statement, the Minister of Finance explained that taxes are an important instrument in national development.
“Taxes must be collected by prioritizing the principles of justice and mutual cooperation. Justice means that groups of people who are able to pay taxes according to their obligations, while those who are unable are protected and even given assistance,” said the Minister of Finance.
Sri Mulyani emphasized the importance of the 1% VAT adjustment policy to ensure fiscal justice, which is in line with the government’s efforts to maintain economic balance and protect the people.
“The government will continue to listen to input to improve a fair taxation system. This policy is expected to maintain the momentum of economic growth, protect the community, and maintain the health and sustainability of the APBN,” he added.
In addition, the Head of the Fiscal Policy Research and Assessment Department of the Indonesian Tax Consultants Association (IKPI), Pino Siddharta, stated that the VAT increase policy is an important step to strengthen Indonesia’s taxation system.
“This VAT increase is part of the government’s efforts to increase state revenue, which is very important to support economic development and public welfare.” Pino said.
Pino also emphasized the importance of transparency and good communication between the government and business actors in dealing with changes in VAT rates.
“More intensive socialization will greatly assist the community and business world in preparing themselves for changes in VAT rates. We will also assist the government in ensuring that the implementation of this policy runs well and in accordance with the principles of justice,” he concluded.
