Experts warn against VAT hike as it could backfire on state revenue and economy

• Experts warn that increasing the value-added tax (VAT) in Indonesia could backfire
• The plan to raise VAT to 12 percent could threaten state revenue and hinder efforts to improve the tax ratio
• Researchers suggest considering alternative revenue streams instead of a VAT hike
• The economy is currently not in good shape, making a VAT increase risky
• A VAT hike could increase costs for producers and consumers, especially during a weak economy

Source: thejakartapost.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.

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