- The government implemented a 12 percent Value Added Tax starting January 1, 2025
- Coordinating Minister Airlangga Hartarto announced the VAT increase aligns with the Tax Regulation Harmonization Law
- Essential goods and services like food, education, and health will have a VAT of 0 percent
- To support low-income families, the government will cover 1 percent of the VAT on basic goods, effectively making the VAT 11 percent for these items
- Specific goods such as packaged cooking oil, wheat flour, and industrial sugar will also have a VAT of 11 percent due to government subsidy
- The economic stimulus aims to maintain the purchasing power of the community, focusing on essential needs and supporting the food and beverage industry
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.
