Jakarta (ANTARA) - President Prabowo Subianto's policy to implement a 12 percent value-added tax (VAT) for luxury goods reaffirms his consistency in economic policies that do not leave the people behind.
Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno made the statement here on Wednesday.
"Once again, President Prabowo has proven his consistency in the principle of 'no one is left behind.' For Mr Prabowo, prosperity is the right of all, and no one should be left behind in building the economy," he remarked.
Soeparno affirmed that the 12-percent VAT on luxury goods reflects that President Prabowo is heedful of the people's aspirations expressed through various channels, including social media and petitions.
"President Prabowo has opened up as much democratic space as possible. He gives space for the expression of opinions, and there is absolutely no repression," he remarked.
"President Prabowo listens to the people's aspirations and proves it with policies that are pro-people," Soeparno affirmed.
He also ensured that the MPR would continue to support President Prabowo's pro-people programs to realize an independent, united, sovereign, just, and prosperous Indonesia in accordance with the mandate of the 1945 Constitution.
"MPR supports the debt cancellation policy for micro, small, and medium-scale enterprises (MSMEs)," he remarked.
Soeparno also stressed that his side supports the president's commitment to stop importing rice and increase the price of unhulled rice, the VAT on luxury goods, and the social assistance stimulus package worth Rp38 trillion, or around US$2.3 billion.
The government has increased VAT from 11 percent to 12 percent starting January 2025, which will only apply to luxury goods and services.
