President Prabowo: PPN 12% Only Things and Luxury Services

Finance News

President Prabwo Subianto attended the 2024 PPN closing activities
President Prabowo Subianto attended a 2024 closed-down event in the Office of the Ministry of Justice, Jakarta, Tuesday (31 / 12 / 2024). (Photo: BPMI Setpres / Muchlis Jr)

Spasi-id.com - The government decided that an increase in 1 percent of the per-grade tax (PPN) is from 11 percent to 12 percent, where PPN 12 percent is used exclusively on luxury goods and services. In addition to that, the terms of the PPN for goods and other services are still consistent with the rate of 2022 which is 11 percent.

The decision to increase the PPN fare for luxury goods was personally delivered by President Prabowo Subianto in his press statement at the Office of the Jakarta Treasury, on Tuesday, December 31, 2024.

"The sample of a private jet is a luxury used or used by the upper society. Then a yacht, a yacht, ya motorcycle yacht. Then a very luxurious house, which is worth above the middle class," say the President.

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Furthermore, the President insists that goods and services which are the basic needs of society are still at zero percent of the VPN rate.

"For the goods and services that many of the people need, which are still being given the release of the PPn, the cost of 0 percent of the cost of the main rice, meat, fish, egg vegetables, fresh milk, health services, public transport services, small house, drinking water."

On that occasion, President Prabowo insists that this increase in PPn rates is the trust of the Number 7-year-2021 Act on the Harmonization of Taxation Rules. According to the government's agreement with the House, the increase of the PPN rates is done gradually from 10 percent to 11 percent by April 2022, and the next VPN 12% will be applied starting January 1, 2025.

"The rise is gradually meant not to have significant impact on the purchasing power of society, on inflation, and on economic growth," said the President.

The president emphasized that this tax policy was designed to prioritize the interests of the people and create a thorough economic alignment. The government is also committed to delivering a stimulus package dedicated to Indonesian society.

"Rice aid for 16 million food recipients 10 kilograms per month, 50 percent discounts for maximum power of 2,200 volts, solid industrial financing of the work works, the PPh incentive of a 21 section for workers to pay up to 10 million a month, then free of PPPH for UMKM combed less than 500 million a year, and so on. These stimulus packages are all 38.6 T (trillion)," it adds up. (BPMI Setpres / DNS)

# Stuff# Services# Fancy# PPN 12 Persen

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