Emergence Of Opposition To The 12% VAT From Various Quarters

KOMPAS.com/DINDA AULIA RAMADHANTY

Emergence Of Opposition To The 12% VAT From Various Quarters

, 22 Dec 2024

The government has confirmed that the Value Added Tax (VAT) will increase to 12% starting January 1, 2025. This policy has sparked protests from various groups.

Demonstrations and statements from organizations such as Muhammadiyah have expressed opposition to this decision. Additionally, a significant number of individuals have signed a petition against the increase.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that raising the VAT to 12% is crucial for maintaining economic stability, providing social protection, and supporting President Prabowo Subianto's Asta Cita program. It is anticipated that this will be achieved through an increase in state revenue. "Enhancing state revenue from the tax sector is essential to advance the Asta Cita program and the President's priorities concerning food sovereignty and energy resilience," Airlangga remarked during a press conference on the Economic Policy Package at his office in Jakarta on Monday, December 16.

"Moreover, it is also vital for various infrastructure programs in education, health, social protection, and initiatives related to nutritious food," he added.

Petition Signed by 95,000 Individuals

A petition has emerged urging the government to cancel the VAT increase. This petition has garnered over 95,000 signatures.

According to detikcom on Thursday, December 19, 2024, the petition was initiated by an account named 'Bareng Warga.' Titled 'Government, Please Cancel the VAT Increase!', the petition began on November 19, 2024.

As of 09:16 WIB, the petition had been signed by 95,284 individuals. This petition is directed at the President of the Republic of Indonesia. Bareng Warga indicated that the petition was created in response to the VAT increase to 12% effective January 1, 2025, arguing that this rise will further burden the public due to anticipated price increases.