Indonesia's President has Agreed to Selective VAT Hike, Senior Lawmaker Says

TAX - JAKARTA. Indonesian President Prabowo Subianto has agreed to raise value-added tax by one percentage point to 12% next year, but only on luxury goods, Sufmi Dasco Ahmad, deputy speaker of parliament, told reporters on Friday.

Starting Jan. 1, 2025, VAT will rise to 12% from 11% currently. There has been public pressure to delay the hike as it could hurt purchasing power.