inp.polri.go.id - Jakarta. Coordinating Minister for Political and Security Affairs (Menko Polkam) Budi Gunawan asked the public not to worry about the policy of increasing VAT to 12 percent, considering that President Prabowo Subianto decided only to apply it to luxury goods.

The Coordinating Minister for Political and Security Affairs also reiterated that the government always strives to improve the welfare of the people.

"With this decision, people do not have to worry as the government continues to strive to improve the welfare of the people," said the Coordinating Minister for Political and Security Affairs on Thursday (1/2/2025).

President Prabowo and Finance Minister Sri Mulyani Indrawati announced the increase in value added tax (VAT) from 11 percent to 12 percent only applicable to luxury goods. Meanwhile, goods and services that have been subject to 11 percent VAT remain unchanged. Then, goods included in the list of basic needs of the community are not subject to VAT.

Goods subject to 12 percent VAT include luxury housing groups such as luxury homes, apartments, condominiums, town houses, and the like with a selling price of Rp30 billion or more.

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