Jakarta. The Center for Indonesian Tax Analysis (CITA) criticized the government for prioritizing the VAT increase, while three other taxes provided for in the Harmonized Tax Regulation Law (UU HPP) are still not implemented. not implemented.

Ruben Hutabarat, Deputy Director of CITA, highlighted that there are three specific tax measures within the UU HPP that have yet to be implemented, including the carbon tax, the excise tax on sugary drinks and the tax on income on e-commerce transactions. According to Ruben, the government should not neglect these taxes and focus on increasing VAT.

“However, it is important to note that within the UU HPP there are other taxes that the government has not yet implemented, although the tax topics are different. For example, the carbon tax , sugar excise and income tax on e-commerce,” Ruben told IDTV on Monday.

He argued that if the government’s intention is to fully implement the UU HPP, these three taxes should also be actively implemented. He warned that the current focus on VAT could give the impression of favoritism towards certain tax topics, given that the topics of the three unapplied taxes differ from the general impact of the increase of VAT.

“The VAT will target almost all segments of the Indonesian population,” he added.

As previously reported, the government is expected to increase the VAT rate to 12% from January 2025. This increase is part of a gradual adjustment under UU No. 7/2021 on the harmonization of tax regulations ( HPP). The VAT rate has already increased gradually, from 10% in 2020 to 11% in April 2022, and is expected to reach 12% by January 2024.

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