- Finance Minister Sri Mulyani Indrawati confirmed implementation of 12% VAT on January 1
- Calls for delay were rejected due to current state budget and fiscal conditions
- Increase in state revenue needed for post-pandemic economic recovery
- New VAT designed to consider health sector and basic needs of people
- Importance of keeping state budget “healthy” to address financial crises and geopolitical tensions
- Gradual VAT increase agreed upon: 10% to 11% in April 2022, final increase to 12% in 2025
Source: jakartaglobe.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.
