CORE: Implementing VAT Increase at Right Momentum for Economic Stability and Fairness

• CORE Indonesia researcher Yusuf Rendy Manilet emphasizes the importance of implementing VAT rate increase at the right momentum
• The increase in VAT rate from 11% to 12% is set to take effect on January 1, 2025
• Adjusting VAT rates to other government policies can prevent negative consequences for the economy
• Indonesia’s VAT rates are still below the world average, with potential to increase state revenue by Rp52 trillion
• The current single tariff scheme for VAT is considered unfair and does not consider differences in purchasing power
• China implements a multi-rate scheme for VAT based on the importance of goods
• Implementing a multi-tariff system for VAT can ensure fairness and progressivity in taxation.

Source: voi.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.

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