The Indonesian government announced a package of relief measures on 16 December 2024 to offset the impact of the increase in the VAT rate to 12% from 1 January 2025. As previously reported, the law for the 2022 State Budget, Law No. 7 of 2021 on the Harmonization of Tax Regulations, provided for an increase in the VAT rate from 10% to 11% from 1 April 2022 and to 12% from 1 January 2025.
The relief package includes a continued VAT exemption for essential goods and services, including rice, …