Vat Increase As an Alternative National Economic Recovery

Abstract

Various efforts were made by the government to immediately carry out economic recovery. One of the government's policies in the economic sector is monetary policy and taxation. The tax incentive policy is one alternative to improve the economic system, but the policy has an impact on other business losses. In the midst of difficult economic conditions, the issue of an increase in Value Added Tax (VAT) 0r has made the public uneasy. This study used a qualitative method, data collection was carried out by interviewing 20 people from various circles. The results of the study describe the impact of government policies on the economic condition of the community. In general, people reject the increase in tax rates, people are very disappointed with the government, they think the increase will make the people poorer. An increase in tax rates will make the prices of basic necessities, fuel, and services more expensive. The government must look for alternative policies, raising tax rates is not an option. One of them is by promoting small business activities (MSMEs). The stimulation is in the form of financial assistance, interest-free loans, tax allowances and tax holidays. This policy will help MSMEs to innovate to increase production, improve the quality of goods and services.