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The Excitement Surrounding The Calculation Of The Value Added Tax (VAT) Indicates That It Is Not An Increase Of 1%, But Rather 9%. The Government Has Responded To This Matter
Monday, 23 Dec 2024
The public is currently stirred by discussions regarding the increase in Value Added Tax (VAT) from 11% to 12%. Various calculations suggest that the tax burden has not increased by 1%, but rather by 9%.
In response to this matter, Coordinating Minister for Economic Affairs Airlangga Hartarto refrained from providing extensive comments. He merely asserted that the VAT increase is only 1%.
"The increase is just 1%," Airlangga stated during an event in Alam Sutera, Tangerang, on Sunday, December 22, 2024. When further questioned about the source of these calculations and whether the 9% figure accurately reflects the tax burden, Airlangga declined to elaborate. He reiterated that the VAT increase is solely 1%.
"The VAT increase is just 1%," he reiterated.
It is noteworthy that the claim of a 9% increase in VAT burden has gone viral on social media. Various accounts have begun to discuss the calculations related to the impending implementation of the 12% VAT starting January 1, 2025.
According to several viral posts from various social media accounts on Saturday, December 21, 2024, the 9% increase refers to the rise in tax burden, not the price of goods.
In response, Tax Analyst from the Center for Indonesia Taxation Analysis (CITA) Fajry Akbar explained that there is a concept known as the statutory tax rate. The 1% increase represents the statutory tax rate.
"The government typically refers to the statutory tax rate. The 9% figure represents the increase in the tax burden compared to the previous tax burden. Thus, the legal rate rises by 1%, while the tax burden increases by 9% from the previous level," Fajry clarified when contacted by detikcom on Saturday, December 21, 2024.
