DIGIVESTASI - PT Pertamina Patra Niaga is currently coordinating with the government regarding the increase in the Value Added Tax (VAT) rate from 11% to 12% that will take effect from January 1, 2025, specifically for non-subsidized Fuel Oil (BBM). The President Director of PT Pertamina Patra Niaga, Riva Siahaan, explained that the company is still evaluating the potential impact of the 1% VAT increase on fuel prices.

"We are still coordinating to see whether there will be any impact on energy or not. Although this 1% increase is actually small, we leave it entirely to the government," said Riva Siahaan during a meeting after the inauguration of the One Price Fuel program in Wayame, Ambon, on Wednesday (December 18, 2024).

As information, starting January 1, 2025, the VAT rate will be increased to 12%. However, the government has ensured that this policy will not apply to all goods and services.

Finance Minister Sri Mulyani Indrawati explained during a press conference on Monday (December 16, 2024) that this policy is designed to support the economy, especially on the demand side, which has been experiencing a decline, although consumption indicators remain stable. Sri Mulyani added that the government is also focusing on protecting and assisting the middle and lower classes, while encouraging productive sectors through incentives for industries.

Several items that will be exempted from VAT include staple food items such as rice, meat, eggs, fish, and milk, as well as services in education, health, finance, labor, insurance, and water. For items such as wheat flour, cooking oil, and industrial sugar, the VAT will be set at 11%.

Additionally, the government will provide electricity tariff discounts of up to 50% for customers with a capacity of less than 2,200 Volt Ampere (VA), such as 1,300 VA and 900 VA, starting January 1, 2025.

The government will also provide a tax incentive scheme for the purchase of homes valued up to IDR 5 billion, with a 100% discount for the first IDR 2 billion during the January-June 2025 period, and a 50% discount during the July-December 2025 period.

Furthermore, Personal Income Tax (PPh21) incentives will also be granted to workers in labor-intensive sectors earning up to IDR 10 million per month.

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