PPN 12 Persen Tetap Berlaku 1 Januari 2025, tapi Bukan untuk Rakyat Kecil

Summary

In a recent dialogue with President Jokowi, Indonesian lawmakers discussed the upcoming 12% VAT hike set for January 2025. The VAT will be selectively applied only to luxury goods, such as high-end vehicles and properties, while basic necessities, education, healthcare, and public services will remain exempt. The government is also considering suggestions from the DPR to reduce taxes on essential items. The President emphasized efforts to curb illegal activities and increase state revenue, ensuring a fair application of the new tax measures.

Takeaways

• 😀 The government plans to implement a 12% Value-Added Tax (VAT) starting January 2025, but the tax will be applied selectively.
• 😀 VAT will primarily target luxury goods, both domestic and imported, with the aim of taxing high-income consumers who purchase these goods.
• 😀 Essential items like basic necessities, education services, healthcare, and public services will remain exempt from VAT or continue with the current 11% rate.
• 😀 The government assured that lower-income groups will not bear the brunt of the VAT increase, ensuring that VAT will not impact daily essentials.
• 😀 The policy of VAT increase has been under review and discussion with the House of Representatives (DPR), with further consultations with the Ministry of Finance planned.
• 😀 Luxury goods that are already subject to the luxury goods tax (PPnBM) will continue to be taxed at the new 12% VAT rate.
• 😀 Items like luxury cars, high-end homes, and other premium goods will be subject to the VAT increase, while the public will not face higher taxes on affordable goods.
• 😀 The President of Indonesia has committed to considering tax relief for essential goods, with plans to evaluate the proposed changes further.
• 😀 There were concerns raised regarding the impact of VAT on lower-income groups, which will be carefully reviewed and addressed by the government.
• 😀 The government emphasized the need to eliminate illegal activities that evade taxes, which will contribute to increasing national revenue.

Q & A

What is the proposed VAT increase in Indonesia?

The Indonesian government is proposing to increase the Value-Added Tax (VAT) to 12%, which will be implemented in January 2025.

Which goods will be affected by the VAT increase?

The VAT increase will apply selectively to luxury goods, including both imported and domestic high-end items, such as luxury cars, expensive properties, and electronics.

Will the VAT increase affect essential goods?

No, essential goods like basic necessities, healthcare services, education, and public sector services will not be affected by the VAT increase and will remain subject to the current VAT rate of 11%.

What is the current VAT rate for essential goods in Indonesia?

The current VAT rate for essential goods, such as food staples, healthcare, and education services, is 11% and will remain unchanged.

What will be the impact of the VAT increase on low-income citizens?

The government intends to protect low-income citizens from the VAT increase by ensuring that only luxury goods are subject to the 12% rate, leaving essential goods unaffected.

What is the government's stance on illegal transactions related to taxes?

The government is focused on addressing illegal transactions and informal economic activities that are currently not reported, aiming to increase revenue by bringing these transactions into the formal economy.

Will there be any incentives for the public due to the VAT changes?

The government is considering providing incentives for the public in conjunction with the VAT increase, with further discussions and consultations taking place to determine the specifics.

How will the government address public concerns regarding the VAT increase?

The government is engaging in dialogues with stakeholders, including the public and members of the Indonesian parliament (DPR), to address concerns and adjust the VAT policy as needed based on feedback.

What steps will the government take in response to suggestions for reducing taxes on essential goods?

The government is considering proposals for reducing taxes on essential goods, with the President stating that these suggestions will be reviewed by the Ministry of Finance and other relevant ministers.

What types of luxury goods will be subject to the VAT increase?

Luxury goods, such as high-end vehicles, luxury homes, and other expensive consumer goods, will be subject to the VAT increase, specifically those that fall under the category of 'luxury goods' as defined by Indonesian tax laws.