- 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.
Latest Posts in "Indonesia"
- Briefing Document: Indonesia’s E-Invoicing and E-Reporting
- Indonesia moves forward with Coretax and new e-invoicing rules
- Government to Cover Part of VAT on Domestic Airfare for 2025-2026 Year-End Holidays
- Indonesia’s DGT Shifts to Real-Time E-Invoice Deactivation for Non-Compliant Taxpayers Under PER-19
- Scheduled Downtime for e-Faktur Web and e-Filing Applications on 18 September 2025
