Indonesia's President Says VAT Hike to Apply Only on Luxury Goods

TAX - JAKARTA. Indonesia's President Prabowo Subianto on Tuesday said a planned increase in value-added tax (VAT) rate by one percentage point to 12% effective Wednesday, Jan. 1, will apply only to luxury goods and services.

Prabowo said the decision should end speculation over which items and services would be affected by the VAT increase.