Indonesia to Hike VAT Next Year, Offers Perks to Soften Blow (1)

Indonesia will proceed with its value-added tax hike in 2025, while offering a raft of incentives to mitigate the impact on consumption and economic growth.

The government will hike the value-added tax to 12% from 11% next year as set in the law, Coordinating Minister for Economic Affairs Airlangga Hartarto said in a briefing on Monday.

It will keep exemptions on basic goods and services related to food, health, education, public transport and religious services, and bear the one percentage point hike on some staples such as government-branded cooking oil, industrial sugar and wheat flour.

The decision to push through ...