The planned tax hike is set to place Indonesia’s VAT – akin to the goods and services tax or GST – as the highest in the region. - AFP
JAKARTA: Lulu Cathelea has resolved to tighten her belt in 2025 by buying cheaper lunches and making her own coffee, as she frets over the imminent hike in Indonesia’s value added tax (VAT) to 12 per cent from 11 per cent.
The planned tax hike will jack up prices of goods and services across the board, hurt consumption and hit the middle class the hardest, economists say.
