VAT on Toll Roads: A Risky Move Threatening Indonesia’s Economy and Public Mobility

• The government plans to impose VAT on toll road services to raise revenue.
• The expected revenue gain is modest compared to the national tax target.
• The policy risks increasing logistics costs, inflation, and harming national competitiveness.
• The proposal has advanced bureaucratically without sufficient public or political debate.
• There are concerns that the economic risks outweigh the potential fiscal benefits.

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.

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