Heaptalk, Jakarta — Recent rumors circulating on social media claiming that QRIS and e-money transactions will be subject to a 12% Value Added Tax (VAT) have prompted the central government to clarify.
At the EPIC Sale event launch in Alam Sutera, Tangerang, on Sunday (22/12/2024), Coordinating Minister for Economic Affairs Airlangga Hartarto reassured the public that QRIS transactions would not incur a 12% VAT. This means consumers will not face additional taxes when using QRIS for payments.
“Secondly (exempt from 12% VAT) is payment systems. Today, there is widespread concern about QRIS, but it will not be subject to VAT. Therefore, QRIS transactions will remain tax-free,” Airlangga stated.
Similarly, he confirmed that transactions made using debit cards, e-money, and other payment cards will not be affected by the VAT increase to 12%. Toll road payments, which rely heavily on e-money, will also remain exempt from the new tax policy.
“Transportation services, including toll transactions using e-money, will not be subject to VAT,” he clarified.
Govt’s initiatives to retain consumer spending power
Airlangga conveyed his robust confidence about maintaining consumer purchasing power in 2025 despite the increase in VAT to 12%. He highlighted various government measures to support economic balance and alleviate potential financial burdens.
These initiatives include a 50% electricity tariff discount for January- February, VAT exemptions for property purchases under Rp2 billion, and continued subsidies for electric vehicles. Specifically, VAT for electric motorcycles will be covered by the government, aligning with Indonesia’s commitment to reducing carbon emissions. Additionally, luxury tax exemptions (PPnBTM DTP) of 3% will be applied to cars.
“These measures demonstrated the government’s attention to consumer needs and purchasing behavior,” Airlangga voiced.
Mitigating inflationary impact
While acknowledging the VAT increase from 11% to 12%, Airlangga emphasized that its impact on inflation would remain minimal. The government has exempted high-impact sectors, such as transportation, from VAT to curb inflation.
Essential commodities will also remain exempt or retain their previous VAT rates. For instance, industrial essentials like flour, cooking oil, and sugar will continue to incur VAT at 11%, ensuring stability in basic commodity prices.
“For example, flour, cooking oil, and industrial sugar, which already incur an 11% VAT, will stay at that rate—not rise to 12%,” he explained.
