- 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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