- Indonesia will confirm next week that it is increasing the value-added tax rate to 12 percent
- The current VAT rate is 11 percent and the increase is scheduled by law to start in January
- Coordinating Minister for Economic Affairs Airlangga Hartarto announced the upcoming confirmation
- There is significant public pressure to delay the VAT increase due to concerns about its impact on consumer spending
- Indonesian businesses and unions have requested a pause on the VAT rate increase due to a worsening economic environment
- The government argues the VAT hike is necessary to improve the budget’s structural health
- A state bank has indicated that the VAT increase will have only a minor effect on economic growth
- The government plans to introduce fiscal stimulus to support labor-intensive industries affected by layoffs and slowing global demand growth
Source: channelnewsasia.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.
