Sri Mulyani Reveals Hospital, International Education, Premium Food Gets 12 Percent VAT In 2025

JAKARTA - The government officially implemented a Value Added Tax (VAT) of 12 percent on January 1, 2025.

This tax will mainly be imposed on services and luxury products, including hospitals and education in the premium segment.

Minister of Finance Sri Mulyani Indrawati said that there was an adjustment to the 12 percent VAT policy tariff which would be worn specifically for luxury goods and consumed by the public which had previously been exempted by VAT.

"In accordance with input from various parties, including in the DPR, so that the principle of mutual cooperation in which VAT-12 is imposed for goods categorized as luxury," he said at a press conference on the Economic Stimulus Package for Welfare, Monday, December 16.

Sri Mulyani conveyed that goods and services are included in the premium category, such as premium valuable food groups, VIP class hospital services, and expensive international standard education.

"We also need to improve a little so that in this case the principle of mutual cooperation and justice is maintained, namely the group that is included in the group consumed by decile 10, namely the richest decile 9-10 we will apply the imposition of VAT," he said.

He gave an example, such as premium beef, such as Wagyu or Kobe, which has a range of IDR 2.5 million to IDR 3 million per kilogram.

Meanwhile, the meat consumed by the public in general ranges from Rp. 150,000 to Rp. 200,000 per kilogram, not subject to VAT.

In addition to beef, 12 percent of premium foods are subject to VAT including premium rice, premium fruits, premium fish, namely premium salmon, premium tuba, shrimp and premium crudecea (king crab).

Sri Mulyani said that the 12 percent VAT rate will be imposed on premium schools where the payment costs hundreds of millions.

"Premium education services, which in this case pay their tuition fees, can reach hundreds of millions, premium health will also be subject to VAT, and also VAT for electricity customers of 3,500-6,600 volt amperes (VA) will be subject to VAT," he explained.

According to Sri Mulyani, the policy for implementing VAT is 12 percent in 2025 which will be worn specifically for luxury goods that were previously exempted by VAT because the majority of the richest groups are decile 9 and 10 most enjoy this VAT exemption facility.

Sri Mulyani explained that the group community enjoyed the exemption of VAT around Rp41.1 trillion.

Meanwhile, the lower class community only enjoys a little VAT exemption.

"This means that our VAT exemption is then more in favor of a more capable group. Therefore, we also need to improve a little so that in this case the principle of mutual cooperation and justice is maintained," he explained.

Meanwhile, there are three basic necessities that are given 1 percent VAT DTP incentive, or will still be subject to an 11 percent VAT rate. Namely, cooking oil for the Minita brand, wheat flour, and industrial sugar.

Sri Mulyani explained that the three items were given VAT DTP incentives because they were goods needed by the community in their daily lives.

"We all from the ministry decided for goods such as wheat flour, sugar for industry, and VAT Oil to remain 11 percent, meaning an increase to 12 percent, 1 percent of the government pays," he said.