#VAT Rates

Purbaya Reviews New VAT Scheme on Gold Jewelry

The government is reviewing a new value-added tax (VAT) scheme for gold jewelry. Purbaya proposes a single 3% rate at the manufacturer level and the abolishment of VAT on consumers in an effort to curb illegal practices and increase tax revenue.

Oct 24, 2025

Minister of Finance Purbaya Considers Lowering VAT Rate

Minister of Finance Purbaya Yudhi Sadewa is reviewing the possibility of reducing the Value Added Tax (VAT) rate from 12% to boost public purchasing power. The review will be carried out carefully while monitoring state revenue performance through the end of 2025.

Oct 14, 2025

Tackling the Challenges of New VAT Rate Implementation in the MUC Bijak Webinar

Marking the start of the year, MUC Consulting is back with its tax webinar series, MUC Bicara Pajak (Bijak), exploring the regulations surrounding the implementation of the new VAT rates for taxpayers.

Jan 14, 2025

Effective Now: 12% VAT for Luxury Goods, 11% for Non-Luxury Goods

Government Sets Dual VAT Rates for Luxury and Non-Luxury Goods at 12% and 11%, Respectively, as per PMK No. 131 of 2024 

Jan 2, 2025

DGT: 1% Increase in VAT Rate Boosts Goods and Services Selling Prices by 0.9%

The Directorate General of Taxes (DGT) claims that the impact of the Value Added Tax (VAT) rate increase on prices is not particularly significant. According to the tax authority's calculations, the price increase resulting from this policy is only about 0.9%.

Dec 23, 2024

Here’s the List of Incentive Packages to Compensate for the 12% VAT Increase

Various tax facilities, both new and expanded, have been prepared by the government to offset the increase in the VAT rate to 12% starting January 2025.

Dec 16, 2024

Government-Borne VAT and STLG Scheme, An Option to Compensate for the 12% VAT Increase

To Compensate for the 12% VAT Increase, the Government prepares Government-Borne VAT and STLG Scheme for Certain Sectors.

Dec 10, 2024

Selective Imposition, Government Sets 12% VAT Only for Luxury Goods

The government and the House of Representatives have reviewed the plan to impose a 12% VAT, and it has been decided that the increase will be selective, applying only to luxury goods.

Dec 6, 2024

Understanding VAT: Definition, Concept, and the Impact of the 12% Rate Increase

The planned increase in the VAT rate to 12% has become a contentious issue, making it important for the public to understand the concept and definition of VAT.

Nov 29, 2024

Government Considers Delaying 12% VAT Increase While Awaiting Stimulus

National Economic Council reveals plan to raise VAT to 12% is still under review, with the option to delay until the stimulus is ready for the public

Nov 28, 2024

VAT Rises to 12%: DGT Assures Proceeds Will Benefit the Community

The Director of the Director of Extension, Services, and Public Relations of DGT, Dwi Astuti, stated that the increase in the Value Added Tax (VAT) rate from 11% to 12% will be compensated with various programs, subsidies, and tax facilities for the public.

Nov 22, 2024

No Revision to the HPP Law, VAT Rate to Remain at 12% in 2025

Minister of Finance Sri Mulyani confirmed that the increase in the Value-Added Tax (VAT) rate to 12% will definitely take effect starting January 1, 2025.

Nov 14, 2024

VAT Increase Simulation: Projected Revenue Boost of IDR 70 Trillion

The government is conducting a simulation of increasing the Value Added Tax (VAT) rate to 12% in 2025. According to the calculations, raising the VAT rate from 11% to 12% would increase state revenue by IDR 70 trillion.

Aug 6, 2024

World Bank: VAT Rate Hike Shows Insignificant Effects

A global financial institution, the World Bank, believes that the government's plan to increase the Value Added Tax (VAT) rate from 11% to 12% in 2025 will not significantly impact additional state revenue.  

Jun 26, 2024

The Increase of VAT Rate to 12% is the New Government's Authority

May 23, 2024