Headline:
MUI‘s Anwar Abbas Urges President Prabowo to Postpone PPN Increase to 12%
Subhead:
Religious Leader Cites Weak Business Confidence and Declining Consumer Spending as Reasons for Delay
Article:
Jakarta, CNN Indonesia — Anwar Abbas, the Deputy Chairman of the Indonesian Ulema Council (MUI), has called on President Prabowo Subianto to postpone the planned increase in value-added tax (PPN) to 12%. In a written statement issued on Thursday (26/12), Anwar argued that implementing the tax hike now would be untimely, given the sluggish state of the business world and the declining purchasing power of the public.
"For the benefit of all parties, it would be best if the government postponed the implementation of the 12% PPN increase until the condition of the business world and the buying power of the people are supportive of it," said Anwar.
Anwar also urged Prabowo to fulfill his promise to implement policies that empower and favor the people. He believes that the current situation presents an opportune moment to keep this promise.
Anwar acknowledged that the increase in PPN to 12% is mandated by Law No. 7 of 2021 on Income Tax and Value Added Tax Harmonization (UU HPP). However, he argued that enforcing this policy in the current context would run counter to the constitutional mandate to ensure the well-being of the people.
The government has announced that the 12% PPN will be implemented starting January 1, 2025. This is a continuation of the policy initiated by President Joko Widodo through the UU HPP. The Directorate of General of Taxes at the Ministry of Finance stated that the 12% PPN will apply to all goods and services currently subject to PPN, including daily items such as soap, ready-to-eat food at restaurants, mobile phone pulse, concert tickets, and streaming services like Netflix.
The planned increase in PPN to 12% has sparked negative reactions from the public, leading to protests and petitions. As of this morning, a petition titled "Government, Immediately Revoke the PPN Increase!" on change.org has garnered 194,433 signatures.
The government’s plan to increase the PPN comes as the country is still grappling with the economic fallout from the COVID-19 pandemic. The move has been criticized for potentially exacerbating the economic burden on households and businesses already strained by the ongoing health crisis.
(DHf/SPR)
