Jakarta – The adjustment of Value Added Tax (VAT) 1%, from 11% to 12% which will come into effect on January 1, 2025 continues to be in the spotlight of various parties.
The government emphasized that this policy aims to strengthen national economic independence and ensure the country’s financial stability in the future.
Permata Bank Chief Economist, Josua Pardede, explained that the increase in VAT rates has a significant impact on state revenue.
“With the increase to 12%, the government will get more funds to fund strategic programs, such as infrastructure development, education, and health. VAT is a source of revenue that is more resilient to economic changes than income tax,” he said.
According to Josua, this policy will also help the government reduce the budget deficit and dependence on debt.
“With higher VAT, we can reduce the financial risks that arise from large spending during the pandemic,” he added.
Meanwhile, economic observer Ryan Kiryanto emphasized that this policy is a mandate of Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (HPP).
“The increase in VAT to 12% is a mandatory step that must be taken to maintain the health of the APBN. However, the government must immediately conduct intensive socialization so that the community and the business world can prepare themselves,” he explained.
Ryan also emphasized the importance of transparency in managing tax revenues.
“The public needs to be assured that tax money will be managed well and returned in the form of public services, such as building roads, hospitals and schools,” he said.
Chairman of the Indonesian Tax Consultants Association (IKPI), Vaudy Starworld, welcomed this policy as an important step in strengthening Indonesia’s tax system.
“This increase in VAT is expected to create a fairer business climate and provide opportunities to improve public services,” he said.
Vaudy added that IKPI is ready to accompany the government in this transition.
“We are committed to providing education to Taxpayers so that they can adapt to the changes. This policy can be a new milestone to strengthen the foundation of the Indonesian economy,” he concluded.
The government is optimistic that this VAT adjustment will not only increase state revenues, but also strengthen Indonesia’s vision of becoming a developed country by 2045.