Indonesian Political, Business & Finance News

Tax Office: Implementation of VAT on Toll Roads Still in Planning Stage

| Source: ANTARA_ID Translated from Indonesian | Regulation
Tax Office: Implementation of VAT on Toll Roads Still in Planning Stage
Image: ANTARA_ID

Regarding the collection of VAT on the provision of toll road services, this matter is still in the policy planning stage and has not yet become an applicable regulation. Jakarta (ANTARA) - The Directorate General of Taxes (DJP) states that the scheme for implementing value added tax (VAT) on toll road services is still in the planning stage as part of medium-term policy. Director of Outreach, Services, and Public Relations of DJP Inge Diana Rismawanti, in a statement in Jakarta on Wednesday, said that Director General of Taxes Decision Number KEP-252/PJ/2025 is a strategic planning document for DJP for the period 2025–2029. “Regarding the collection of VAT on the provision of toll road services, this matter is still in the policy planning stage and has not yet become an applicable regulation,” said Inge. The document, she continued, contains the direction of medium-term policy, including the agenda to expand the tax base to create a fairer and more sustainable taxation system. According to her, the inclusion of this concept in the strategic planning document reflects the direction of policy strengthening ahead, particularly in efforts to expand the tax base proportionally, maintain equitable treatment across types of services, and support fiscal sustainability for development financing, including infrastructure. “If this policy is to be formalised, the mechanism will go through a comprehensive and careful process, including in-depth studies, cross-ministerial and institutional coordination, and consideration of impacts on society, the business world, and the transportation sector,” she said. “If the policy is later established, official information will be conveyed openly through government communication channels,” she added. Previously, Finance Minister Purbaya Yudhi Sadewa stated that the plan to implement VAT on toll roads would be further studied. He admitted he had not yet delved into the issue and would coordinate with DJP, as well as request the Directorate General of Economic and Fiscal Strategy to conduct an analysis before the policy is decided.

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