Important Note! This Is A List Of Luxury Goods Subjected To 12 Percent VAT

President Prabowo Subianto. (Photo: ANTARA)

JAKARTA - President Prabowo Subianto emphasized that the plan to increase the Value Added Tax (VAT) rate to 12 percent in 2025 will only be worn on luxury goods and services.

Some of the luxury goods and services affected by VAT 12 percent, namely apartments, condominiums, and town houses at a selling price of Rp. 30 billion or more, air balloons, private aircraft, bullets and firearms, to cruise ships and yachts.

For your information, a list of luxury goods and services will be applied to an increase in VAT of 12 percent on January 1, 2025.

On the other hand, the list of luxury goods and services affected by VAT is 12 percent the same as those stipulated in PMK Number 15 of 2023.

"This means that for goods and services that are not classified as luxury goods, there is no increase in VAT, which is still as big as it is now, which has been in effect since 2022," Prabowo said during a press conference at the Ministry of Finance, Tuesday, December 31.

Prabowo added that the basic needs of the community, which have been given exemption facilities or subject to a 0 percent VAT rate, are still valid.

"For goods and services, which are the basic needs of the community who have been given exemption facilities or subject to a 0 percent VAT rate, it still applies. I repeat, goods and services which are the basic needs of the community who have been given tax exemption facilities, namely 0 percent VAT is still valid," he said.

Meanwhile, non-luxury basic goods/services are still subject to the VAT rate as before, which is 11 percent.

On the same occasion, Minister of Finance Sri Mulyani explained, a list of basic goods/services whose VAT rates are 0 percent in 2025.

"All goods and services that have been 11 percent, still 11 percent have not increased VAT. For all goods and services that have been fixed so far. Goods and services that have received exceptions are 0 percent VAT, which is not paying VAT at all, namely goods related to staple foods," he said.

Sri Mulyani explained that 0 percent VAT tariff goods/services are rice, corn, soybeans, fruits, vegetables, sweet potatoes, wood sweet potatoes, sugar, livestock and the results are fresh milk, poultry, animal slaughter, rice-padian, nuts, fish, shrimp, other biota, seaweed, train tickets, airport tickets, and people's transportation.

Next, goods and services that remain subject to 0 percent VAT rates are such as public transportation services and rivers, delivery of package services, travel bureau services, government and private education services, textbooks, holy books, health services, pension fund financial services, Credit cards, loss insurance, and life insurance.

"All of them still get 0 percent VAT facilities, while all other service goods, which so far have remained 11 percent, have not been affected by 12 percent", he explained.