Jakarta – The Value Added Tax (VAT) Adjustment Policy from 11 percent to 12 percent continues to be a hot topic. This policy is considered a strategic step to anticipate the downward trend in Corporate Income Tax (PPh) revenues while strengthening the competitiveness of the national economy.
Pratama-Kreston Tax Research Institute Executive Director, Prianto Budi Saptono, assessed that the increase in VAT is the right effort to strengthen state revenue amidst the dynamics of the global economy. “This policy not only encourages state revenue, but also increases foreign investor confidence in Indonesia’s fiscal stability,” said Prianto. According to him, with a clear direction of fiscal policy, Indonesia will be better able to attract investment that contributes to long-term economic growth.
However, to ensure that this policy does not cause negative effects, supporting steps are needed. Economic observer from North Sumatra, Gunawan Benjamin, reminded of the importance of an inflation mitigation strategy. “A 1 percent VAT increase is indeed necessary, but there must be a price control policy so that people’s purchasing power is maintained. Certain subsidies for important commodities can be an option,” said Gunawan.
Meanwhile, Deputy Speaker of the Indonesian House of Representatives, Sufmi Dasco Ahmad, ensured that the increase in the VAT rate to 12 percent was carried out selectively. He explained that the new rate would only be applied to certain goods, especially luxury goods. “For basic necessities and services that directly touch the community, the VAT rate of 11 percent will still be imposed,” he said. This approach is designed to ensure that there is no undue pressure on the wider community.
This VAT increase policy shows the government’s efforts to maintain fiscal balance without ignoring the needs of the people. With planned implementation and support from accompanying policies, VAT Adjustment is expected to be an effective solution to strengthen the national economy, attract more investment, and maintain economic stability amidst global challenges. This step proves that the government is not only focused on increasing state revenues, but also ensuring that people’s welfare remains a top priority.
