KONTAN.CO.ID - JAKARTA. The increase in the Value Added Tax (VAT) rate to 12% planned by the government in 2025 is considered to put great pressure on financing companies or multifinance.

This opinion was conveyed by Nailul Huda, Economist and Director of Digital Economy at the Center of Economic and Law Studies (Celios).

According to Nailul, this policy has the potential to reduce demand for financing due to weakening public purchasing power.

"The public tends to hold back consumption when purchasing power decreases. When demand for goods decreases, financing companies, including multifinance, will definitely be affected," said Nailul to Kontan.co.id Tuesday (11/19).

He added that multifinance companies need to immediately adjust their strategies, for example by offering attractive promotions so that consumers remain encouraged to buy goods.

However, Nailul also highlighted the role of the government in easing the burden on the community. According to him, the increase in VAT will actually increase the burden borne by the community.

Therefore, he emphasized that the plan to increase the VAT rate to 12% in 2025 should be canceled.

"The government has the opportunity to ease the burden on the community, but instead chooses to increase it. Therefore, the increase in the VAT rate next year must be canceled," said Nailul.

As is known, the Ministry of Finance has confirmed that the adjustment of the VAT rate from 11% to 12% will begin to be implemented in 2025.

This policy is part of the government's efforts to increase state revenues, although it has raised concerns from various parties regarding its impact on people's purchasing power.