Headline:
Retail Shoppers in Indonesia to Get PPN Refunds: Dirkjen Pajak
Article:
Retail consumers in Indonesia can breathe a sigh of relief as the Director General of Taxes (DJP) at the Ministry of Finance (Kemenkeu) announced plans to refund the 12% Value Added Tax (PPN) they’ve already paid. The refund is in response to the recent tax hike, which was later reversed by the government.
Director General of Taxes Suryo Utomo confirmed the refund during a media briefing at DJP Kemenkeu in South Jakarta. However, he noted that the refund mechanism is still being discussed and will be finalized in the near future.
"In principle, the rightful owner [of the tax revenue] is the state, but the rightful owner of the refund is the taxpayer. The manner of refund will be arranged later. I assure you, it won’t be burdensome for the taxpayers," Suryo said.
The refund is expected to be in place for retail consumers who have paid the 12% PPN, although the exact timeline and process remain uncertain. The tax authority is also currently negotiating with retail businesses to revert their tax systems back to the previous 11% PPN rate.
Suryo emphasized that the implementation of the 12% PPN, as mandated by Law No. 7/2021 on the Harmonization of Tax Regulations, will continue until January 1, 2025. Meanwhile, the government has decided not to increase PPN for non-luxury goods, necessitating a new basic tax rate (DPP) set by a Minister of Finance Regulation (PMK).
"We’re currently discussing with them [retailers], trying to figure out if three months would be sufficient for them to update their systems," Suryo added. Following the event, Director of Public Relations, Customer Service, and Community Relations at DJP Kemenkeu, Dwi Astuti, confirmed that the PPN transition would take no more than three months.
During the transition period, businesses are expected to continue charging 12% PPN, with refunds to be issued later. Consumers are advised to keep their receipts for easy tracking and refund claims.
(fby/sfr)
