Potential Economic Setback: Apindo Warns Against VAT Increase in 2025

• Apindo raised concerns about the government’s decision to increase VAT to 12 percent in 2025
• The increase in VAT could strain the economy during the recovery from the COVID-19 pandemic
• The government has the flexibility to adjust the timing or delay the increase
• The VAT increase could impact businesses and consumer purchasing power
• The government should focus on a broader scale for state revenue
• The 12 percent VAT rate is expected to be formalized in the 2025 State Budget under President-elect Prabowo Subianto
• If VAT becomes 12 percent, it will be the highest in Southeast Asia, burdening consumers who spend most of their income on basic needs.

Source: jakartaglobe.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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