Toll Road VAT Still Under Review, Tax Office Confirms No Applicable Rules Yet

The government has assured that the plan to impose Value Added Tax (VAT) on toll road services is still at the planning stage and has not become official policy. Director General of Taxation, Bimo Wijayanto, stated that there is currently no regulation governing the collection of VAT on toll road services. “We need to convey that regarding the issue of VAT collection on the provision of toll road services, this is currently still at the policy planning stage and has not become an applicable provision,” he told Republika on Tuesday (21/4/2026). He emphasised that there has been no change in tax treatment applied to the public regarding toll road services. According to Bimo, the direction of policy to expand the tax base is indeed being prepared by the government to create a fairer and more sustainable tax system. This is outlined in the future strategic planning of the Directorate General of Taxation. “The Directorate General of Taxation is preparing strategic planning that includes the direction of tax base expansion policy to create a fairer and more sustainable tax system,” he said. Nevertheless, he assured that every new policy will go through a long and careful process. The government will conduct in-depth studies and coordination across ministries and agencies before establishing regulations. “If this policy is to be formalised, it will certainly go through a comprehensive process, including considering the impact on society, the business world, and the transportation sector at large,” Bimo explained. The government also emphasised the principles to be maintained in every tax policy, namely fairness, legal certainty, administrative ease, and continued attention to the public’s purchasing power. “If the policy is later established, official information will be conveyed openly through government communication channels,” he said. In the planning document, the Directorate General of Taxation notes the need to expand the tax base to increase state revenue, which has so far been suboptimal. On the other hand, the plan to impose VAT on toll roads has also attracted attention. Economist from the Center of Economic and Law Studies (Celios), Bhima Yudhistira, assessed that the policy could suppress toll road usage and impact the logistics sector. “If burdened with VAT, it could become even quieter. Logistics trucks could also switch to arterial roads,” he told Republika.