Finance Minister Sri Mulyani announces VAT will not increase in 2025, here are 5 new policies that are officially in effect

Menteri Keuangan Sri Mulyani. (Dok: kemenkeu.go.id)

12% VAT only for luxury goods.

For the Indonesian people, the news about VAT not increasing in 2025 is a breath of fresh air. Finance Minister Sri Mulyani has just revealed several important facts related to the VAT policy that will be implemented next year.

The topic of VAT not increasing in 2025 is very important for everyone to understand. Given that VAT is directly related to the goods and services we consume every day.

In the 2024 State Budget Cash Closing Meeting and the launch of Core Tax at the Ministry of Finance, Sri Mulyani revealed that President @prabowo was also present and announced several important points related to VAT policy in accordance with the Law on Harmonization of Tax Regulations Law 7/2021 . One of the main points discussed was that VAT would not increase in 2025.

Why is this information important? VAT or Value Added Tax is a tax imposed on every good and service we consume. If the VAT rate changes, it can directly impact people's purchasing power and the economy as a whole.

By understanding the VAT policy that will be implemented, we can plan our spending better and make the right decisions in facing the economic situation in the future. Here is the complete review.

This policy ensures that basic necessities such as rice, salt, and vegetables will remain VAT-free in 2025. Services such as public transportation and health services will also remain VAT-free. This is important to maintain people's purchasing power.

Goods and services currently subject to 11% VAT will not change. For example, electronics and restaurant services will remain subject to the same rate. This provides price certainty for the public.

The increase in VAT to 12% only applies to luxury goods that are already subject to Luxury Goods Sales Tax (PPnBM). For example, private planes and luxury cars. This policy aims to create fairness in taxation.

The government will continue to provide various stimulus and tax incentives to help the community and the business world. For example, rice assistance and electricity discounts for certain customers. This is all to support the economy.

The VAT policy of not increasing in 2025 is part of the government's efforts to maintain justice and side with the people. By keeping the VAT rate stable, the government wants to encourage inclusive economic growth.

These are the 5 important facts about VAT not increasing in 2025 as revealed by Finance Minister Sri Mulyani.

With VAT not increasing, the prices of daily necessities will remain stable. This helps people, especially the lower middle class, in managing their budgets.

This policy is expected to encourage people to spend more, which in turn will increase economic growth.

For business actors, the absence of changes in VAT rates provides certainty in planning business and investment strategies.

With VAT not increasing, it is hoped that price stability can be maintained and inflation can remain under control.

The 12% VAT policy for luxury goods reflects the government's efforts to realize tax justice.

Tax incentives for MSMEs and labor-intensive industries will help the growth of these sectors, which are the backbone of the Indonesian economy.

(brl/red)