Finance Minister Purbaya Reprimands Tax Directorate Over Toll Road VAT Controversy

Finance Minister Purbaya Yudhi Sadewa has been troubled by the controversy surrounding the proposal to impose Value-Added Tax (VAT) on toll road services. He stated that he would reprimand officials at the Directorate General of Taxes (DJP) under the Ministry of Finance regarding the rumours of this new tax, which have caused significant public concern. “So yes, earlier I said I will reprimand DJP, and in the future, taxes have issued several announcements that are quite disturbing,” Purbaya remarked in Jakarta, as quoted on Tuesday (12/5/2026). Due to its crucial and highly sensitive nature, he added, all official announcements related to plans for new taxes will be channelled through a single source, namely himself. “There is toll tax, this tax, that tax. So in the future, only I can announce tax policies, not DJP anymore,” he said. According to the former Chairman of the Indonesia Deposit Insurance Corporation (LPS), information about new taxable objects can make the public anxious, especially as the government is striving to increase tax revenues. For context, the proposal to impose toll road tax through a VAT scheme emerged following the circulation of a document in DJP’s 2025-2029 Strategic Plan (Renstra). This policy is outlined in the Draft Minister of Finance Regulation (RPMK) on Expanding the Tax Base for a Fairer Tax Imposition. In the Renstra, DJP includes the preparation of regulations on the mechanism for collecting VAT on toll road services as one of the priority policies. “Providing a legal basis for the mechanism of collecting VAT on the provision of toll road services,” states the document. DJP considers this regulation necessary as a new legal foundation for taxing sectors that have not been optimally addressed so far. The toll road VAT regulation is targeted to be completed by 2028. Meanwhile, citing Antara, DJP stated that the scheme for implementing VAT on toll roads is still in the planning stage as part of medium-term policies. “Regarding the collection of VAT on the provision of toll road services, this is still in the policy planning stage and has not become an applicable provision,” said Inge.