Inp.polri.go.id - Jakarta. President Prabowo Subianto has called for a review of the planned 12% Value-Added Tax (VAT), exploring a multi-tier system in response to public concerns ahead of its 1 January 2025 implementation.

The Chairman of the House of Representatives (DPR) Commission XI overseeing financial, monetary and development issues,  Muhammad Misbakhun revealed that the government is assessing alternatives to a uniform VAT rate. 

“The proposal is under review to ensure VAT rates are not applied uniformly,” he explained after a meeting at the Presidential Office on Thursday (5/12/2024).

The House proposed lowering VAT on essential goods like staples while imposing higher rates on luxury items. 

The House Deputy Speaker Sufmi Dasco Ahmad noted the President's commitment to considering these adjustments.

President Prabowo has instructed the Ministry of Finance and relevant officials to promptly analyze the proposal. 

Under the proposed system, essential services such as healthcare, education, and banking would remain at the current 11% VAT, while luxury goods would carry the higher 12% rate, ensuring fairness and public satisfaction.

(mg/inp/pr/nm)