Increase in VAT Rate to 12%: Government Strategy to Maintain Fiscal Balance and Social Protection
The Value Added Tax (VAT) rate in Indonesia will increase from the current 11% to 12%, effective January 1, 2025. This policy is part of the government’s strategy to support the implementation of Law No. 7 of 2024 on the Harmonization of Tax Regulations (UU HPP), designed with consideration for vulnerable groups in society. ..









