Purbaya assures no toll road VAT implementation before economy improves

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has assured that Value Added Tax (VAT) on toll roads will not be implemented until 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 good enough and the public’s purchasing power is sufficiently strong. That is the main benchmark,” Purbaya said during a media briefing in Jakarta on Friday.

The Finance Minister explained that the proposal to impose VAT on toll roads is currently merely a long-term plan by the Directorate General of Taxes (DJP) and will be further reviewed by the Ministry of Finance.

In addition, regarding the plan to tax high-wealth individuals (HWI), Purbaya also stated that the policy will not be implemented in the near future and is still in the study phase.

“That is a long-term plan made previously. Even the current Secretary General does not recommend it on the homepage (DJP’s Strategic Plan 2025-2029). So it is still the old regime. That’s why we are making slight changes to make it more orderly,” he explained.

Furthermore, the State Treasurer conveyed that the government is currently focused on optimising existing tax instruments to increase state revenues.

Purbaya will pursue companies that conduct business practices not in accordance with regulations, including in the steel sector.

“Those steel companies that I mentioned are running their business improperly. We will chase them again,” he clarified.