As a New Year's gift to the people in 2025, President Prabowo canceled the plan to increase VAT (PPN) from 11% to 12%. After the policy adjustment, the 12% VAT will only apply to luxury goods and services consumed by the wealthy, such as private jets, yachts, and luxury homes. Meanwhile, goods and services essential for daily life will remain at a 0% tax rate, while other non-luxury goods and services will continue to be subject to the current 11% rate. This decision reflects the government's efforts to achieve the welfare of the people and promote national development, aiming to bring peace and prosperity to the populace.
As a New Year's gift to the people in 2025, President Prabowo canceled the plan to increase VAT (PPN) from 11% to 12%. After the policy adjustment, the 12% VAT will only apply to luxury goods and services consumed by the wealthy, such as private jets, yachts, and luxury homes. Meanwhile, goods and services essential for daily life will remain at a 0% tax rate, while other non-luxury goods and services will continue to be subject to the current 11% rate. This decision reflects the government's efforts to achieve the welfare of the people and promote national development, aiming to bring peace and prosperity to the populace.