- Businesses relieved at averted VAT hike, but adapting takes time Business groups have expressed support for the policy U-turn that averted a value-added tax (VAT) hike on Jan. 1, but called on the government to be more predictable as the last-minute decision caused widespread confusion. High-ranking officials brief the press about economic stimulus measures intended to cushion the impact of an impending value-added tax (VAT) hike to 12 percent, on Dec. 16, 2024, at the Office of the Coordinating Economic Minister in Jakarta. In a last-minute decision some two weeks later, the VAT hike was limited to apply only to luxury goods and services. (JP/Deni Ghifari) B usiness groups have expressed relief over a policy U-turn that averted a value-added tax (VAT) hike on Jan. 1 but called on the government to be more predictable as the last-minute decision caused widespread confusion. Shinta Kamdani, chairwoman of the Indonesian Employers Association (Apindo) told The Jakarta Post on Thursday that the association applauded the government’s decision to apply the 12 percent VAT rate only to luxury goods and services rather than enforcing it across the board. “This policy shows the government’s sensitivity to the state of the national economy, specifically regarding public spending power, which is still in the recovery stage, and challenging businesses conditions,” she said.
Source: thejakartapost.com
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