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 …