- The Finance Minister is considering lowering the VAT rate to boost consumer spending amid slowing economic activity.
- Any decision will depend on year-end tax revenue and economic performance reviews.
- The planned VAT increase to 12% in 2025 currently only applies to luxury goods; most goods remain at 11% due to public resistance.
- Economists believe a temporary VAT cut could stimulate household consumption but may reduce fiscal space unless compensated by other measures.
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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