- PT Laba Forexindo Berjangka Director Ibrahim Assuaibi warns of economic risks from a proposed VAT increase to 12%
- Ibrahim notes that a previous VAT increase to 11% in 2022 led to a 0.95% rise in inflation in just one month
- Finance Minister Sri Mulyani reports a current annual inflation rate of 1.55% and emphasizes maintaining purchasing power
- Ibrahim raises concerns about the VAT increase impacting household spending and potentially reducing economic growth
- He suggests using additional VAT revenue for public welfare programs like healthcare, education, and infrastructure
- Coordinating Minister for Economic Affairs Airlangga Hartarto says the VAT increase details are being finalized for implementation by January 1, 2025
- Airlangga confirms the policy decision is expected to be finalized soon but details on affected luxury goods remain undisclosed
Source: en.tempo.co
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.
