Wahyu Prakoso, Esposin, Solo – Students who are members of the Greater Solo Student Executive Council (BEM) Alliance and civil society activists held a demonstration in the Gladak area of Solo, Central Java, on Saturday afternoon December 28 to reject the planned value added tax (VAT) increase.
A light drizzle accompanied the action that was attended by dozens of students all dressed in black who formed a circle and delivered speeches rejecting the increase in VAT to 12 percent.
Greater Solo BEM Central Coordinator Syaifullah said that the VAT increase, which is in accordance with Law Number 7/2024 on the Harmonisation of Tax Regulations, is an inhumane policy.
"We reject it because the increase in VAT is detrimental to the ordinary people, it's like a form of thuggery against the lower middle class", he explained to reporters following the demonstration.
According to Syaifullah, the tax burden will not be followed by increasing public welfare. The VAT increase could worsen economic disparities, weaken the public's purchasing power and worsen people's quality of life, especially the lower economic class.
He said that the government is arguing that the VAT increase will only be applied to luxury goods and services. However, the policy actually applies to basic necessities, such as soap and basic commodities.
In addition to this, he said, the government actually provides a 0 percent royalty incentive to industries that have a damaging impact on the environment, such as coal companies. The policy decisions being taken show that the government is siding with big business.
He said the Greater Solo BEM Alliance and community members are urging the government to revoke the VAT increase policy, guarantee subsidies for basic commodities, re-evaluate Law Number 7/2024 and impose fair taxes on big industries.
Then be transparent and accountable in imposing taxes, prioritise the people's economy and stop burdening the common people. The government must stop policies that widen economic disparities, eradicate poverty and improve public welfare.
[Translated by James Balowski. The original title of the article was "Aliansi BEM Soloraya dan Warga Demo di Gladak Solo, Tolak Kenaikan PPN 12%".]
