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Analysis of the Increase in the Imposition of 11% Value Added Tax Rates on the Price of Packaging Cooking Oil and General Inflation and Food Price Inflation Vissia Dewi Haptari; Sri Murwani; Nur Indah Lestari; Ari Mulianta Ginting; Dahiri, Dahiri
Jurnal Ilmiah Multidisiplin Indonesia (JIM-ID) Vol. 4 No. 05 (2025): Jurnal Ilmiah Multidisplin Indonesia (JIM-ID), June 2025
Publisher : Sean Institute

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Abstract

This study is significant as the tax policy, namely an 11% increase in VAT rates, may impact the economy by elevating cooking oil prices and contributing to overall inflation and food inflation. This study aims to examine the rise in the application of an 11% VAT on bottled cooking oil and other food products. The research model employs a quantitative research methodology. The research employs secondary data sourced from the National Socio-Economic Survey (Susenas) conducted by the Central Statistics Agency (BPS), badanpangan.go.id, and Bank Indonesia. The data spans from March 2021 to July 2024 and encompasses a panel of 34 provinces. The implementation of an 11% VAT rate substantially elevates the price of cooking oil. The average price of cooking oil prior to the 11% VAT was IDR 15,950 per liter, however the price subsequent to the 11% VAT rose by 15.05%, resulting in an average of IDR 18,350 per liter. Simultaneously, oil prices exert a favorable and strong influence on the escalation of general price inflation and food price inflation, quantified at 0.0002.