"A lower VAT rate will encourage consumer spending and demand for goods, which in turn will boost productivity in the real sector," he said in a statement, Sunday.
Misbakhun acknowledged that while the reduction may not have a significant immediate impact, it could be offset by an increase in transaction volumes.
He also suggested that certain agricultural products be taxed at 8 percent to strengthen the agricultural sector.
He added that such fiscal policies are essential for ensuring that lower-income communities genuinely feel relief, aligning with President Prabowo Subianto's commitment to alleviating the hardships faced by Indonesian citizens.
"President Prabowo wishes for the people to smile. This simple yet meaningful aspiration reflects the noble purpose of leadership. Policies must be enacted to reduce the tax burden on the lower-income population under the current circumstances," he added.
Misbakhun stressed that maintaining consumer spending is key to sustaining purchasing power and that the House of Representatives stands ready to support any policies that help preserve the public's economic resilience.
Translator: Primayanti
Editor: Aditya Eko Sigit Wicaksono
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