Finance Minister Purbaya Reassesses VAT Rate Cut Proposal

Finance Minister Purbaya Yudhi Sadewa said that a VAT (PPN) rate cut cannot be decided yet because the government is waiting for Indonesia’s economic data through the first quarter of 2026. He also announced that Ministerial Regulation (PMK) 72/2025 has been issued, expanding the government‑funded PPh Article 21 (DTP) incentive for the tourism sector.

Purbaya explained that changing the VAT rate requires extensive fiscal and economic calculations, so a rushed policy is avoided. He voiced skepticism about shadow‑economy estimates, noting that its size remains uncertain, and highlighted that the Coretax system limits annual tax return (SPT) PDF attachments to 25 MB for financial reports and 5 MB for other documents.

The postponed VAT cut keeps the current consumption tax burden unchanged for taxpayers, while the broadened PPh 21 DTP incentive aims to boost economic growth and job creation in tourism. The new file‑size limits and fraud warnings reflect the tax authority’s emphasis on secure and compliant reporting.