[FULL] Menkeu Sri Mulyani Beberkan Rincian Barang Mewah yang Kena PPN 12 Persen

Summary

In this speech, the Indonesian government discusses the VAT increase from 11% to 12%, which will apply only to luxury goods such as private jets, yachts, and high-end homes, as outlined in the Minister of Finance Regulation (PMK). Everyday goods, essential food items, and services like healthcare and transportation will remain either exempt or taxed at the existing 11%. The government also reaffirms various stimulus measures, including subsidies for electricity, tax breaks for SMEs, and support for workers affected by layoffs. The goal is to ensure economic stability, fairness, and protection for the public during this transition.

Takeaways

• 😀 The new 12% VAT will only apply to luxury goods and services, not to general consumer items.
• 😀 Items that previously had a VAT of 11% will maintain the same rate, with no increase to 12%.
• 😀 Basic necessities like rice, vegetables, meat, and other food items remain exempt from VAT, with a 0% tax rate.
• 😀 Services related to public transportation, education, and healthcare will also continue to be exempt from VAT.
• 😀 VAT on luxury items such as private jets, yachts, and high-end real estate with prices over 30 billion IDR will be subject to the new 12% rate.
• 😀 The 12% VAT increase is part of a broader economic strategy to maintain purchasing power and ensure fairness.
• 😀 Various government stimulus programs, such as subsidies for workers and UMKM (micro, small, and medium enterprises), will continue as previously announced.
• 😀 Tax breaks for low-income workers, such as the government covering income tax for those earning up to 10 million IDR, remain in place.
• 😀 The government will continue supporting industries with financing for labor-intensive projects and machine revitalization programs.
• 😀 The VAT changes will not affect the implementation of previous fiscal policies, and no immediate changes are expected between today and tomorrow.

Q & A

What was the main announcement regarding VAT (PPN) in the transcript?

The main announcement is that the VAT rate will increase from 11% to 12% but only applies to luxury goods and services, such as private jets, luxury homes, and yachts. For most goods and services, the VAT remains at 11%.

Which categories of goods and services will experience the 12% VAT increase?

The 12% VAT increase applies to luxury goods, including private jets, luxury homes, yachts, balloons that can be flown, and specific aircraft and firearms (excluding those for government purposes).

What is the status of the VAT for essential items like food?

Essential items like rice, vegetables, fruits, livestock, and certain health-related services remain exempt from VAT, with a 0% rate. This includes items like fresh milk, eggs, and transportation services such as train tickets.

What items remain exempt from VAT or are taxed at 0%?

Items such as basic food items (rice, vegetables, fruit), healthcare services, educational materials, and transportation services like train and public transportation will continue to have a 0% VAT.

How are small and medium enterprises (UMKM) affected by the new tax policies?

Small businesses with a turnover under 5 million IDR will not be required to pay income tax (PPH). Additionally, businesses with turnover up to 500 million IDR will continue to have a 0.5% final tax rate until the end of 2025.

What is the government's approach to protecting public purchasing power and fairness in taxation?

The government aims to protect purchasing power and ensure fairness by keeping the VAT rate unchanged at 11% for most goods and services. Only luxury goods will be subject to the new 12% VAT increase.

How will the government support workers who face layoffs?

The government will provide Job Loss Insurance (JKP) for workers who are laid off and offer access to extended support. Additionally, subsidies and financing will be available for labor-intensive industries to support workers and businesses.

What is the impact on the purchase of electric vehicles under the new VAT scheme?

The government is incentivizing the purchase of electric vehicles by providing subsidies, including discounts on VAT for electric cars and hybrid vehicles.

What role do luxury goods play in the government's VAT increase plan?

Luxury goods, such as yachts, private jets, and luxury homes, are the primary focus of the VAT increase to 12%, in order to generate revenue from high-end products while protecting the cost of living for the general public.

How will the VAT adjustments affect the overall economy in 2025?

The government hopes that by maintaining the VAT rate at 11% for most goods and services, while introducing targeted increases for luxury items, the economy will stabilize, ensuring growth and mitigating the pressure on the lower and middle-income populations.