Monday, 23 December 2024 – 18:02 WIB
Deputy Chairman of Commission XI DPR RI from the National Awakening Party (PKB) faction, Muhammad Hanif Dhakiri. Photo: DPR RI Public Relations
jpnn.com – JAKARTA – Deputy General Chairperson of the National Awakening Party DPP M Hanif Dhakiri assesses that the plan to increase Value Added Tax (VAT) to 12% on January 1 2025 is a mandate of the Law on Harmonization of Tax Regulations (UU HPP), which was ratified on October 7 2021 by government and DPR for the 2019-2024 period.
According to him, the stages of implementing the VAT increase are set in stages. The VAT rate increased from 10% to 11% on 1 April 2022, and is scheduled to increase again to 12% from 1 January 2025.
Hanif said that President Prabowo, who now has to implement these regulations, has taken wise steps by limiting the 12% tariff increase to only apply to luxury goods, so that it does not burden people’s basic needs.
“President Prabowo shows real concern for the people by ensuring that this policy does not suppress people’s purchasing power, especially the lower middle class,” said Hanif.
The Deputy Chair of Commission XI of the DPR also asked all parties, especially the parties in the DPR which had previously approved the HPP Law, to be consistent and fair in providing information and explanations to the public.
“Don’t let anyone use the 12% VAT issue as a tool to attack President Prabowo. “In fact, President Prabowo is in the position of having to implement the laws inherited from the previous government,” said Hanif.
He also gave a note to the Ministry of Finance to be careful in formulating the category of luxury goods subject to 12% VAT.
“The definition of luxury goods must be made very carefully and precisely so as not to target the lower middle class. People’s purchasing power must remain the main priority in implementing this policy. “I assume that this is also President Prabowo’s concern,” he said.
Hanif said that President Prabowo had taken wise steps by limiting the increase in the VAT rate to 12%.
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