Indonesia Raises VAT to 12%, Exempts Essential Goods from Increase

• Indonesia will increase the value-added tax rate from 11% to 12% next year
• The increase applies to luxury goods and services such as premium food, international schools, and high-end hospitals
• Essential items like government-supplied cooking oil and wheat flour will remain taxed at the current 11% rate
• The VAT is legally scheduled to rise by 1% every January 1
• There is growing public opposition, prompting lawmakers to consider a more selective approach to the tax increase
• Finance Minister Sri Mulyani Indrawati confirmed the details of the new VAT application

Source: kaohooninternational.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.

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