Indonesian president Prabowo Subianto has confirmed that the increased value-added tax (VAT) from 11 per cent to 12 per cent, effective from January 1, applies only to luxury goods and services.
Speaking at a press conference in Jakarta on New Year’s Eve, Prabowo explained that the VAT increment would only be be imposed on luxury goods (classified under the Sales Tax on Luxury Goods or StoLG category) and services, such as private jets, cruise ships, yachts, and luxurious houses.
He further clarified that VAT on non-StoLG goods and services would remain unchanged. Items that have been subject to 11 per cent VAT since 2022 will not be affected, while basic goods and services, which have been exempt from VAT, will continue to benefit from these tax exemptions.
Sri Mulyani Indrawati, Indonesia’s minister of finance, also explained: “Goods and services that have so…
Boutique Travel VC raises investment cap from $1.5M to $10M to lead rounds and support portfolio companies through growth Travel...
Read moreDetails
