The planned increase in Indonesia’s value-added tax (VAT) rate from 11% to 12% could reduce the country's gross domestic product (GDP) by 21 trillion IDR (1.3 billion USD), economists warned.
Increasing value-added tax (VAT) does not help boost economic growth, but it can increase the poverty rate, said a report announced by the Vietnam Institute for Economic and Policy Research (VEPR) under the University of Economics and Business - Vietnam National University in Hanoi on June 28.
