- The government in Jakarta is considering increasing the value-added tax (VAT) to 12% as part of the 2025 macroeconomic framework and fiscal policy principles.
- The increase in VAT to 12% is expected to take effect before January 1, 2025, as per the tax regulations.
- The government aims for tax revenue to account for 12.3% to 12.36% of GDP by 2025.
- The implementation of the VAT increase may be adjusted based on the new government’s decisions.
- Discussions are ongoing with the Deputy Minister of Finance to ensure a smooth transition process.
- The decision to increase VAT to 12% will consider the economic situation next year and its impact on purchasing power.
- The new government has the authority to adjust policies based on their campaign promises and direction.
- The 2025 national budget will be designed within the scope of the National Finance Law, focusing on mandatory and routine expenditures.
Source: voi.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
