He added that the government is currently in the final stage of calculating the planned VAT increase and will announce it at the headquarters of the Coordinating Ministry for Economic Affairs.
"We will finalize the calculation (of the VAT increase). On Monday at 10 in the morning, the government will unveil the VAT and packages of economic policies," he informed at the Presidential Palace, Jakarta, on Friday.
Hartarto also assured that staple commodities will remain on the list of goods exempt from VAT.
"Most importantly, basic goods are free from VAT," he said.
Earlier on December 3, 2024, the minister said that the government will soon announce several fiscal policies, including those related to next year's taxes and business incentives.
"We are in the process of finalizing PPn BM (a sales tax on luxury goods) for the automotive sector and government-borne VAT for the property sector," he informed at his office in Jakarta.
Hartarto highlighted that the government will also announce several new incentives for labor-intensive industries and some adjustments to incentives for machinery rejuvenation.
He emphasized that the government is determined to boost the competitiveness of national labor-intensive industry players, especially those not relying on foreign investment.
Furthermore, the minister highlighted that the government has not ruled out the possibility of providing other incentives to bolster people's purchasing power.
"We already have social assistance as a means to (strengthen) people's purchasing (power). Thus, we will need to assess it (the need for more incentives) first," he said.
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Translator: Fathur R, Tegar Nurfitra
Editor: Azis Kurmala
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