- The Indonesian government will increase the value-added tax rate from 11 percent to 12 percent starting January 1, 2025
- The announcement was made during a press conference on economic policy packages in Jakarta
- Some essential goods will be exempt from VAT including rice, chicken meat, beef, various types of fish, chicken eggs, and several types of chilies
- Wheat flour, subsidized cooking oil Minyakita, and industrial sugar will have a government-borne VAT rate of 1 percent, keeping their VAT at 11 percent
- Families in the lowest income brackets will receive 10 kilograms of rice assistance monthly
- Several strategic services will also be exempt from VAT including education, medical, social, and public transportation services, as well as financial services and public housing rents
- These tax facilities are part of broader fiscal incentive policy packages proposed for 2025
Source: en.antaranews.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"
- 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
- Indonesia Reinstates 100% VAT Incentive for Home, Apartment Purchases up to Rp2 Billion in 2026
- Finance Ministry Offers 100% VAT Incentive for Home Buyers Throughout 2026
