- Business groups like Apindo demand more incentives due to challenges from salary and VAT increases
- A 5 percent reduction in loan interest rates for labor-intensive industries is deemed insufficient by these groups
- They face rising operational costs due to a significant minimum wage increase and weakened demand from a VAT hike
- Lobby groups are advocating for additional support including temporary cuts in corporate and regional taxes and subsidies for social security contributions
- The government plans to increase VAT from 11 percent to 12 percent and minimum wage by 6.5 percent starting January 1, 2025
- In response, the government has introduced measures like the interest rate cut and a continued reduction in final income tax for MSMEs to mitigate these impacts
Source: thejakartapost.com
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.
Latest Posts in "Indonesia"
- Indonesia Grants Full VAT Exemption on Domestic Eid Flights to Boost Holiday Travel
- Indonesia to Cover VAT on Domestic Airline Tickets During Eid al-Fitr Holiday Period
- Finance Ministry Probes 40 Steel Firms for Rp5 Trillion Annual VAT Losses
- Finance Ministry to Inspect Steel Giants After Uncovering Widespread VAT Evasion Scheme
- VAT Registration and E-Faktur Compliance in Indonesia: Key Challenges for Foreign Investors
