Jokowi supports 12 percent VAT increase as required by law

Journalist:
Tri Romadhani|

Editor:
Tri Romadhani|

Sunday 29/12/2024, 1:25 p.m. WIB

The 7th President of the Republic of Indonesia, Joko Widodo-special-

INCORRECT – Indonesia's 7th President, Joko Widodo (Jokowi), has expressed support for the government's policy that will increase the value-added tax (VAT) rate to 12 percent.

Jokowi stressed that this decision was a statutory mandate jointly designed and approved by the government and the House of Representatives.

“It became a decision to harmonize tax regulations. The House of Representatives approved it, so the government must implement it,” Jokowi said, Saturday, December 28, 2024.

He also stressed that the government was not negligent in adopting this policy.

According to him, careful calculations were made to ensure that the impact of the policy could be accepted by the community.

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“All possible impacts have been taken into account by the government. I am sure that this decision was made after in-depth analysis and various careful considerations,” added the former DKI Jakarta Governor and Mayor of Solo.

Jokowi realized that this policy could trigger a public backlash.

However, he again stressed the importance of implementing the mandate of the law within the framework of good governance.

“I think the government has thought about different aspects. This policy is part of our responsibility to follow the rules that have been set,” he concluded.

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Earlier, Gerindra Party General Secretary Ahmad Muzani explained the background of the VAT increase policy.

He revealed that this plan began to be discussed in 2021 in response to the depressed economic situation resulting from the COVID-19 pandemic.

“When this law was discussed in 2021, the conditions in the country were difficult. State revenues had declined significantly due to the pandemic. Therefore, the government, like many other countries, was looking for ways to increase revenues,” said Muzani, Monday, December 23. 2024.

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