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

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. 

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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. 

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Airlangga Hartarto Center For Indonesia Taxation Analysis Value Added Tax