By: Rivka Mayangsari*)
In a challenging economic situation, the government’s decision to cancel the increase in Value Added Tax (VAT) rates from 11 percent to 12 percent and apply the new policy only to luxury goods is a breath of fresh air for the Indonesian people. This step not only shows the government’s concern for the economic impact on the people, but also reflects an effort to listen to the people’s aspirations. Many parties, including community leaders and organizational leaders, appreciate this decision as the right step that is in line with the needs of the people. In this context, the cancellation of the VAT rate increase is important. This wise step is considered a careful response to the needs and aspirations of the people, and shows that the government is very concerned about the economic conditions of the people.
The administrator of the National Conscience Movement (GNB), Lukman Hakim Saifuddin, said that the cancellation of the VAT increase shows that the government is sensitive and willing to listen to input from the public. This statement illustrates the government’s involvement in listening to the aspirations of the people, which has been the hope of many parties.
The importance of this decision is not only felt by ordinary people, but also received support from various groups, including religious organizations. KH Marsudi Syuhud, Deputy Chairman of the Indonesian Ulema Council (MUI), expressed his appreciation for this government move. He explained that the increase in VAT only applies to luxury goods, and emphasized that this policy has been considered by the government, the purpose of which is for the common good. This statement confirms that the government has taken into account the impact of the policy on the welfare of society as a whole.
From an economic perspective, setting a higher VAT only for luxury goods and services is considered a strategic step in maintaining people’s purchasing power. Secretary of the Democratic Party Faction of the Indonesian House of Representatives, Marwan Cik Asan, said that this decision is a pro-people tax policy. He said that setting a 12 percent VAT for luxury goods and services is a policy that prioritizes the interests of all Indonesian people, including protecting people’s purchasing power and encouraging economic equality. This shows that the government is not only focused on increasing state revenues, but also trying to maintain the stability of the people’s economy.
From the public’s perspective, this decision is very meaningful. The increase in VAT that does not occur on goods that are daily necessities can help them to maintain their welfare. This is because higher VAT can drive up the price of goods and services which can suppress people’s purchasing power, especially those with low incomes. Thus, this policy provides a breath of fresh air for people who are struggling amidst tough economic challenges.
In addition, by canceling the VAT increase, the government shows its commitment to creating fairer and more equitable policies. This is a positive signal to the public that the government is always open to criticism and suggestions from various elements. This is in line with the demands of the public who increasingly want transparency and accountability in government decision-making.
As a caring society, we also need to understand that taxation policies do not only impact the economic sector, but are also related to social justice. By focusing the VAT increase on luxury goods, the government is trying to create a fairer system. This will help reduce the gap between high and low income groups in terms of access to goods and services.
With various positive statements from community and religious organization figures, it is clear that this government step has received widespread support. The cancellation of the VAT increase can be seen as a step towards a more equitable economic revival, where all levels of society can feel the benefits. History records that policies that favor the people are one of the important pillars in achieving shared prosperity.
Seeing this reality, the public certainly expects the government to continue to commit to listening to the voice of the people and making policies that are in the interests of all Indonesian people. Public appreciation for the cancellation of the VAT increase can be an encouragement for the government to continue to innovate and create better policies in the future.
Thus, the government’s move to cancel the 12 percent VAT increase is worthy of appreciation as a decision that reflects concern for the community. The community’s hopes are believed to be achieved with policies that not only consider aspects of state revenue, but also the welfare of the people as a whole. This is a momentum for the government to continue to strive to increase public trust in every step taken.
This decision is the first step towards greater positive change. The public must continue to speak out and be active in the policy-making process, in order to achieve the common goal of better welfare. Together, we can support the government in creating policies that are more pro-people, so that a prosperous and just society is created. The agenda of economic improvement, social justice, and the welfare of all people must continue to be the main priority for every government action in the future.
*) Economic observer