- Cancellation of VAT Increase: Coordinating Minister Budi Gunawan announced that President Prabowo Subianto canceled the planned increase of Value-added Tax (VAT) from 11% to 12% on New Year’s Eve 2025, providing a special gift to the Indonesian people.
- Focus on Luxury Goods: The planned VAT increase applies only to luxury goods and services, targeting the wealthy upper class, while basic necessities would remain tax-exempt at 0%.
- Government Commitment: Gunawan emphasized that this decision reflects the government’s ongoing efforts to improve public welfare and ensure a prosperous future for Indonesia, alleviating concerns about increased tax burdens on the populace.
Source: indonesiabusinesspost.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.
