The government has confirmed that the plan to impose Value Added Tax (VAT) on toll road services, as well as taxes targeting high-income individuals, will not be implemented at this time.
Minister of Finance, Purbaya Yudhi Sadewa, stated that these policies are only part of the Directorate General of Taxes (DGT) Strategic Plan (Renstra) 2025–2029, as outlined in Director General of Taxes Decree No. KEP-252/PJ/2025.
Still a Long-Term Plan
According to Purbaya, discussions around taxes on the wealthy and VAT on toll roads are not short-term policies.
These measures are part of a long-term strategy developed previously and are not a priority for the current administration.
He also emphasized that the implementation of any policy within the strategic plan will depend heavily on national economic conditions.
Focus on Economic Stability
The government has made it clear that it will not:
- Introduce new types of taxes
- Increase existing tax rates
as long as the domestic economy is not yet strong enough, particularly in terms of public purchasing power.
Fiscal policy will continue to focus on maintaining economic stability and supporting recovery.
Priority: Tax Law Enforcement
Instead of adding new tax burdens, the government is currently prioritizing:
- Closing revenue leakages
- Strengthening tax law enforcement
This includes taking action against violations such as:
- Intentional tax misreporting
- Underinvoicing practices in exports
This approach is considered more effective in increasing state revenue without placing additional pressure on the public.