Jakarta – The government ensures that several incentive packages will continue to run according to commitments even though the Value Added Tax (VAT) increase has not been canceled. President Prabowo Subianto said the 12 percent VAT only applies to luxury goods.
“Earlier, the incentive package was still running as promised. Today, if you guys have checked, if I’m not mistaken, those who buy electricity tokens today have received a 50 percent discount,” said the Expert Staff of the Minister of Finance for Tax Compliance at the Ministry of Finance, Yon Arsal.
However, he said there was one type of incentive that was not given, namely incentives for cooking oil, wheat flour, and industrial sugar. Because with VAT 12 specifically for luxury goods, then automatically products such as cooking oil, wheat flour, and industrial sugar follow the old policy of 11 percent.
In addition, discussions regarding incentives for electric vehicles and the housing sector are also confirmed to continue according to the initial plan.
The government is committed to providing a stimulus package of Rp38.6 trillion in 2025. This is done as a shock absorber or cushion against the impact of the increase in VAT to 12 percent. President Prabowo said the stimulus package could be in the form of rice assistance, income tax (PPh) incentives, and a 50 percent discount for electricity customers.
“Rice assistance for 16 million recipients of 10 kg of food assistance per month, a 50 percent discount for electricity customers with a maximum power of 2,200 volts, financing for labor-intensive industries, PPh Article 21 incentives for workers with salaries of up to IDR 10 million per month,” said President Prabowo.
“Then there is free income tax for MSMEs with a turnover of less than IDR 500 million per year. And so on. So the total value of this stimulus package is IDR 38.6 trillion,” he added.
The government’s move to maintain a number of incentives is considered important in maintaining national economic stability. This policy is expected to help the community and business actors survive amidst increasingly challenging global economic pressures.
From the energy sector, incentives in the form of a 50 percent electricity discount have been felt directly by the community. This is one of the government’s efforts to ease the burden on households with small electricity, while increasing energy efficiency.
On the other hand, incentives for labor-intensive industries and MSMEs are expected to create new jobs and maintain the competitiveness of local products in the international market. The government is committed to continuing to encourage the growth of this sector as the backbone of the Indonesian economy.
With these steps, the government is optimistic that this incentive policy will bring real benefits to the community, while maintaining the momentum of inclusive and sustainable economic growth.
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