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    Rizal Ramli: VAT Increase Is SMI's Panic Way To Only Pay Interest on Debt

    BeritaBaru.id
    17 Mei 2021, 04.47 WIB Last Updated 2021-05-16T21:47:00Z

    NEW NEWS ■ The plan to increase the value added tax (VAT) rate which will be carried out in 2021 is a form of panic by Minister of Finance Sri Mulyani Indrawati (SMI) in overcoming state debt.

    "It is an indication that SMI is already panicking because the government is experiencing liquidity problems," said senior economist Rizal Ramli to the editor, on Sunday (16/5).

    Not without reason. The minister with the world's best predicate has been carried out in various ways to minimize the increase in the country's already mounting debt.

    However, some of the policies issued were even more burdensome for the people.

    "Even THR payments have been deducted, the hajj and waqf money is allocated for infrastructure, BI has forced BI to print Rp. 1,000 trillion by obliging BI to buy debt securities on the primary market, so that the proposal to increase the VAT tax to 15%," he criticized.

    "Panic and uncreative ways to boost revenue are simply to be able to pay interest on debt amounting to Rp 345 trillion," said Rizal Ramli.
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