Government’s Plan to Increase VAT to 12% by 2025 Sparks Controversy and Concerns

• Minister of Economic Affairs Airlangga Hartarto plans to increase VAT to 12 percent by 2025
• He aims to increase tax income through a better system
• The government’s target is to enlarge state revenue from taxation
• The increase in VAT has faced opposition due to potential negative impacts on entrepreneurs and consumers
• Critics argue that the VAT hike could lead to a decline in consumption and erode business profits
• Researchers believe that the policy could reduce Indonesia’s competitiveness and lead to a decrease in exports and household consumption

Source: en.tempo.co

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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