- Indonesian parliament proposes VAT increase only for luxury items
- VAT set to rise by 1 percentage point to 12% starting January 1, 2025
- Proposal aims to avoid impacting low income individuals
- Luxury items include those already subjected to luxury sales tax such as certain houses, cars, airplanes, and yachts
- Luxury tax ranges from 10% to 200% and will still apply in addition to the new VAT rate
- Government to announce response and economic package next week including stimulus measures
- Key staple items, education, and health-related costs remain exempt from VAT
- Government considers impact on purchasing power in upcoming decisions
- Fiscal stimulus planned for labor-intensive industries and assistance for poor households with electricity bills
Source: thestar.com.my
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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