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Today's Headlines VAT Indonesia

  • Indonesian Government Plans to Raise Value-Added Tax (VAT) in 2022; Example of Bad Timing?

    Indonesian Government Plans to Raise Value-Added Tax (VAT) in 2022; Example of Bad Timing?

    While Indonesia is still in the middle of the COVID-19 crisis, albeit – most likely – set to exit the economic recession in the second quarter of 2021 due to the so-called low base effect, and while Indonesian consumers continue to display reluctance to spend (reflected by 16 consecutive months of contracting retail trade on an annual basis), the Indonesian government expressed its intention to raise Indonesia’s Value-Added Tax (VAT, or in Indonesian: Pajak Pertambahan Nilai, abbreviated as PPN).

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