Value-Added Tax (VAT) & Luxury Goods Sales Tax (PPnBM) Spending to Increase Next Year

July 27, 2024, 09.25 AM | Reporter: Dendi Siswanto

ILUSTRASI. Indonesia tax office building in Jakarta, Indonesia, April 3, 2018. Picture taken April 3, 2018. REUTERS/Willy Kurniawan

TAX - JAKARTA. The Indonesian government has allocated a budget of IDR 262.3 trillion for Value Added Tax (VAT) and Luxury Goods Sales Tax (PPnBM) for the year 2025. This figure represents a 14.99% increase from the 2024 allocation of IDR 228.1 trillion.

The Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemkeu), Febrio Nathan Kacaribu, stated that the increase in tax expenditure is in line with the growth of Indonesia's economy and the increase in public activity in the coming year.

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