PDIP Chief Denies Rumors: Party Not Behind PPN 12% Proposal
In a strong denial, Deddy Yevry Sitorus, the chair of the DPP (Central Leadership Board) of the PDIP, has rejected claims implicating his party as the initiator of the proposed increase in the Value Added Tax (VAT) rate to 12%.
Speaking in Cikini, Jakarta, on Sunday (22/12), Deddy refuted these misconceptions, asserting that the main driver behind the proposed increase was the government led by President Joko Widodo. "It’s incorrect to say PDI Perjuangan is behind this. The proposal came from the government through the Ministry of Finance," he stated.
Deddy acknowledged that the party had a role in the legislative harmonization process, with a PDIP member serving as the committee chair. However, he clarified that the decision to approve the bill was made by the legislature, not the party. He also noted that the proposal was supported by eight political factions in the House of Representatives, with only PKS opposing it.
Furthermore, Deddy agreed with certain factions that have requested a re-evaluation of the proposed VAT increase, citing the current economic conditions. He expressed concern over the decreasing purchasing power of the middle class and the recent sharp increase in the dollar exchange rate.
In conclusion, Deddy emphasized that PDIP bears no blame towards the government of Prabowo Subianto regarding this proposal. Instead, he encouraged Prabowo to reassess the potential impacts of the VAT increase on the wider public.
Contrarily, Gerindra parliamentarian Wihadi Wiyanto insist that PDIP is indeed the initiator of the proposed VAT hike, as it was a product of the 2021 Law on Harmonization of Tax Regulations (UU HPP), which was initiated by PDIP. Wihadi stated that PDIP’s current stance on the VAT increase is at odds with their earlier position when the law was formed, despite PDIP heading the committee discussing the increase.
