Politics
From Jokowi era, continued by Prabowo
Bisnis.com, JAKARTA — The Indonesian people faced taxes PPN 10% for at least 37 years or from 1985 to 2022, before the definitive end of the tariffs tax This increases to 11% from April 1, 2022.
This increase actually started during the second administration of Joko Widodo or in 2021. At that time, the government wanted to create a Draft Law (RUU) on General Provisions and Procedures (KUP) which contained questions on the increase in the value added tax (VAT) rate. until the tax amnesty or. tax amnesty.
The project was finally included in the National Legislative Program (Prolegnas) in March 2021, but was never discussed by the House of Representatives (DPR).
Until May 2021, Jokowi sent Presidential Letter (Surpres) number R-21/Pres/05/2021 requesting that the DPR immediately discuss and finalize the KUP bill.
Finally, at the end of June 2021, the DPR began discussions on the KUP bill, which thus changed its name to the Harmonization of Tax Regulations Project (HPP).
In less than six months and after receiving approval from the Commission, the majority of factions, including PDIP, Gerindra, Golkar, PAN, Democratic Party, Nasdem Party, PKB and PPP, accepted the project.
Except that PKS still firmly refuses to ratify the regulations in plenary session. However, the HPP Bill also officially remains in force (UU) as of October 7, 2021 as the majority of factions agree.
As a result, Jokowi once again implemented a tax amnesty or tax amnesty volume II which generated additional revenue worth IDR 61.01 trillion.
Apart from this, the HPP law also provides that the VAT rate will increase to 11% from April 1, 2022 and to 12% from January 1, 2025 or one week later.
President Prabowo Subianto, currently in office, also adheres to the mandate of the HPP Law passed three years ago. The government currently has no intention of postponing or canceling this plan.
Unfortunately, in the HPP Law the government also provides for a carbon tax that will come into force on April 1, 2022. However, in reality this policy has not been implemented and there is no news even though it is mandated by law. Meanwhile, VAT rates continue to rise.
The government, in this case the director of extension, services and public relations General Directorate (Ditjen) of Taxes Dwi Astuti argued that increasing VAT rates would not disrupt purchasing power and economic growth.
“The increase in the VAT rate from 11% to 12% has no significant impact on the prices of goods and services,” he said in an official statement, Saturday (12/21/2024) .
According to calculations by the General Directorate of Taxes, a tariff increase of 1% only brings an additional price of 0.9% for consumers.
For example, if previously a drink cost IDR 7,000 with a rate of 11%, it would cost IDR 7,770. Now with a tariff of 12%, the drink costs IDR 7,840, an increase of IDR 70 or the equivalent of 0.9%.
However, economists and figures from various circles are encouraging the government to reverse this policy because purchasing power is currently low. This is reflected in inflation which has reached its lowest level since 2021.
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Sources 2/ https://ekonomi.bisnis.com/read/20241225/9/1826914/awal-mula-ppn-naik-jadi-12-dimulai-di-era-jokowi-dilanjutkan-prabowo The mention sources can contact us to remove/changing this article |
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