Prabowo’s VAT Hike: Luxury Goods Face 12% Tax in 2025 [Video]

Luxury goods to ⁤Face Higher Taxes in 2025, Indonesian Government Announces

Jakarta, Indonesia – Indonesian consumers ​can expect to see a price hike ‌on luxury goods starting in 2025.Defense Minister and presidential hopeful Prabowo subianto has announced plans to increase the Value Added⁤ Tax ‌(VAT) on these items ‍to 12%, a move aimed at boosting government ‌revenue and ⁤addressing economic disparities.

The decision,⁢ which was revealed during a recent meeting with business leaders, has‌ sparked debate among economists and consumers ​alike. While some applaud⁢ the move‍ as a necessary step towards a⁢ fairer tax system,⁢ others​ express‌ concern about⁣ the potential impact on consumer spending‍ and the overall economy.

“This policy is designed to ensure that those⁢ who can afford luxury goods contribute more to the national budget,” explained a‍ spokesperson for⁢ the Ministry of Finance. “The revenue generated will be used to fund essential public services and social programs‍ that benefit …