Finance Minister Assures Toll Road VAT Not Yet in Effect, Awaiting Economic Improvement

Finance Minister (Menkeu) Purbaya Yudhi Sadewa has assured that value-added tax (PPN) on toll roads will not be imposed before economic conditions improve. The government will not add tax burdens until the public’s purchasing power is deemed sufficiently strong. “Our position remains unchanged: we will not impose additional taxes until it is considered sufficiently good and the public’s purchasing power is strong enough. That is the main benchmark,” said Purbaya during a media briefing in Jakarta on Friday (24/4/2026). The Minister explained that the proposal to impose VAT on toll roads is currently only a long-term plan by the Directorate General of Taxes (DJP) and will be further studied by the Ministry of Finance. As is known, this plan is included in the DJP’s 2025-2029 Strategic Plan as one of the options for expanding the state revenue base. In addition, regarding the plan to tax high-wealth individuals (HWI), Purbaya stated that the policy will not be implemented in the near future and is still in the study phase.