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Indonesia Limiting VAT Rate Increase to Luxury Goods and Services

|Approved Changes|Indonesia
Indonesia

Despite recent confirmation that Indonesia's standard VAT rate would be increased from 11% to 12% as scheduled from 1 January 2025, with some relief measures (previous coverage), President Prabowo Subianto announced on 31 December that the increase to 12% would only apply to luxury goods and services. According to Prabowo, the government has decided that the increase in the VAT rate only applie…

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