Determination of VAT Rates is Based on Holistic Study

Jakarta – Finance Minister Sri Mulyani Indrawati said that every tax policy, including the adjustment of the VAT rate to 12 percent, was prepared by considering conditions in various sectors. She emphasized that the policies issued by the government did not act unilaterally or without considering their impact on society.

“When we make policies on taxation, including VAT, it is not done blindly and as if it has no affirmation or attention to other sectors, such as health and even at that time including staple foods. The government really cares about these aspects,” said Sri Mulyani.

According to Sri Mulyani, the government’s policy regarding the adjustment of VAT rates has undergone a holistic and in-depth study, covering various economic, social, and fiscal aspects. This adjustment is not only a strategic step to increase state revenue, but also a form of government caution in maintaining balance amidst the national economic recovery after the COVID-19 pandemic.

Likewise, the Head of the Ministry of Finance’s Communication and Information Services Bureau, Deni Surjantoro, stated that the VAT rate adjustment policy had undergone in-depth discussions with the House of Representatives (DPR).

“Basically, the 1 percent VAT rate adjustment policy has gone through in-depth discussions between the government and the DPR, and has certainly considered various aspects, including economic, social, and fiscal,” said Deni.

This adjustment also goes hand in hand with the government’s efforts to improve the efficiency of the State Budget (APBN). Coordinating Minister for Community Empowerment Muhaimin Iskandar said that the government continues to optimize the use of the budget to ensure the welfare of the community, including by increasing the allocation of social assistance (bansos).

“We continue to work so that social assistance continues to increase, including how the APBN is made more efficient and streamlined so that this social assistance is greater,” said the man who is familiarly called Cak Imin.

In addition, the government is also targeting that social assistance receipt data can be completed in full by the end of 2024.

“Yes, as soon as this month until December, one source of distribution data has been fulfilled,” he added. [*]

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