Twelve Spicy, Twelve Sorrows

I find it hard to believe that the taxes we pay do not translate into decent public services, let alone good ones.

KOMPAS/CAHYO HERYUNANTO

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In December, usually what is widely discussed is vacation plans or discounts at shopping centers. However, this year, what makes many people feel like they have been bitten by a hot chili is another number twelve, namely Value Added Tax which will be increased from 11 percent to 12 percent. For decades through several periods of time, VAT has remained at 10 percent. When the pandemic just subsided, in April 2022, it was increased to 11 percent and starting in January 2025 it will be increased again to 12 percent.

Protests have flooded in from the public, even after the government explained that the 12 percent rate only applies to certain luxury goods and that there are stimuli for vulnerable demographics. This means that the people still feel burdened. Some parties continue to argue that the increase of "only" 1 percent should not significantly drive up overall prices, or that many other countries have higher VAT rates.