TEMPO.CO, Jakarta - The Finance Ministry said that the list of luxury goods subjected to a 12 percent value-added tax (VAT) is still being discussed internally. The information was conveyed an official of the Fiscal Policy Agency (BKF) of the Finance Ministry.

"Still under discussion," said the Head of the Budget Policy Center for State Revenue and Expenditure (APBN) BKF, Wahyu Utomo in a text message to Tempo on Saturday, December 7, 2024.

President Prabowo Subianto has confirmed that new VAT tariff will be implemented in accordance with the law starting in January 2025. However, Prabowo emphasized that the 12 percent VAT will be imposed only on selected goods.

"Selective only for luxury goods, we will still protect the other people, since late 2023, the government stopped collecting what should have been collected. To defend and help small people," said Prabowo during a statement in the Presidential Palace complex on Friday afternoon, December 6, 2024.

Previously, on a different occasion, the Coordinating Ministry for Economic Affairs stated that the list of luxury goods subjected to a 12 percent VAT will be regulated by Finance Minister Sri Mulyani. Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, mentioned that President Prabowo has assigned this task to Sri Mulyani.

"The President explained that the technical details will be arranged by the Finance Minister," said Susi when asked about this matter at the Coordinating Ministry for Economic Affairs office in Central Jakarta on Friday, December 6, 2024.

Susiwijono mentioned that determining luxury goods that will be subjected to the increased VAT is the task of Tax Directorate General officials at the Finance Ministry. He stated that the types of commodities exempted from VAT have been regulated in Government Regulation (PP) No. 49 of 2022.

NABILLA AZZAHRA

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