- Indonesia will confirm next week that it is increasing the VAT rate to 12 percent
- The current VAT rate is 11 percent and the increase is scheduled for January
- There is significant public pressure to delay the VAT increase to protect consumer spending
- Indonesian businesses and unions want the VAT hike paused due to a worsening economic environment
- The government argues the VAT increase is necessary to improve budget health
- A state bank believes the VAT hike will minimally impact economic growth
- The government plans to introduce fiscal stimulus to support industries facing layoffs due to slowing global demand
Source: businesstoday.com.my
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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.
