January 2nd, 2025

GORONTALO CITY, Kominfotik – President Prabowo Subianto announced to raise the Value Added Tax (VAT) to 12%, only applied to luxury goods. Meanwhile, essential goods will remain unaffected by this increase.

Related with this, Acting Gorontalo Governor, Rudy Salahuddin, emphasized that President Prabowo’s policy is clear. “The increase of VAT to 12% is only applied to  luxury goods and services, not for essential needs or goods and services required by the public, especially food,” Rudy expressed.

Rudy stated that the president’s policy  must  be implemented at the regional level to prevent any polemics that could happened. He also  added that luxury items subject to the 12% VAT such as  private jets, yachts, motor yachts, and luxury homes valued above the middle-class range.

“For goods and services that do not fall into the luxury category, there will be no VAT increase. Additionally, goods and services that are essential for the public, which have been subject to a 0% VAT rate, will remain unchanged,” Rudy explained.

Rudy also conveyed  that every tax policy will  prioritize to the people’s interests ,protect purchasing power, and promote economic equity. “The government’s commitment is  always in line with the general public and national interests, as well as strive and work for the welfare of the people,” he closed.

Reporter: Haris

Translated by Fera Katili