- The Indonesian government will cover a one percent VAT increase for three specific commodities starting January 1, 2025
- The commodities affected are wheat flour, sugar for industry, and affordable cooking oil named MinyaKita
- Despite the general VAT increase to 12 percent, these three commodities will maintain an effective VAT rate of 11 percent
- Finance Minister Sri Mulyani Indrawati announced this decision during a press conference in Jakarta
- The decision aims to support the general public by keeping essential goods affordable
- The VAT rate for all other goods and services in Indonesia will increase to 12 percent from the current rate
- This VAT adjustment aligns with Law Number 7 of 2021, which focuses on the Harmonization of Tax Regulations
- The government will also exempt VAT for some basic necessities and important goods to ease economic impacts
Source: en.antaranews.com
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.
