TEMPO.CO, Jakarta - Secretary General of the Gerindra Party, Ahmad Muzani, said that President Prabowo Subianto understands the objections or criticisms regarding the 12 percent value added tax or VAT policy. He said that all views, criticisms, and suggestions that develop in society are accepted as a note before the president makes a decision.

"Mr. Prabowo understands the objections and later in time, he will announce all of that, what points must be taken to make an increase," said Muzani at the parliamentary complex, Senayan, Central Jakarta, on Monday, December 23, 2024.

He stated that the policy had been decided through the ratification of the Tax Regulation Harmonization Law (UU HPP) in 2021. Then as a mandate of the law, the government was asked to increase VAT from 11 to 12 percent by 2025.

When the bill was discussed in 2021, said Muzani, the world was facing the Covid-19 pandemic. At that time, according to Muzani, Indonesia was in a condition where it did not have the capacity for revenue.

"So the country, all countries thought about how to get sources of revenue. So at that time, the DPR together with the government thought about how to increase sources of revenue," he said.

Muzani said that one source of revenue was by increasing the tax revenue sector from VAT. Finally, the DPR together with the government discussed the possibility of increasing VAT gradually from 10 to 11 percent, to 12 percent.

"Indeed, at that time it was carried out by the parties in the DPR. As a party that participated in the Advanced Indonesia Coalition at that time, Gerindra participated together and gave approval," he said.

At that time, only the Prosperous Justice Party (PKS) faction rejected the tax increase plan. While the rest, stated that they supported the VAT increase. Starting from PDIP, Gerindra, Golkar, NasDem, PKB, Demokrat, PAN, to PPP.

As of October 20, 2024, Prabowo was officially inaugurated as president. As an obligation to the Law that has been decided, the government is obliged to implement the law.

"Now then we find protests. Even party friends who previously agreed, now also question and so on. I think that as a democratic process, something that is natural," said Muzani.

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