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Indonesia to hike VAT across the board, not just luxury goods

Indonesia to hike VAT across the board, not just luxury goods

FILE PHOTO: A general view of the skyline of Jakarta, the capital city of Indonesia, August 5, 2021. REUTERS/Ajeng Dinar Ulfiana/File Photo

Indonesia on Monday decided to go ahead with a wide-ranging increase in the value-added tax rate to 12% next year, reversing a plan to only apply the hike to luxury goods, but will introduce measures to soften the blow on lower-income earners.

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