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Representation of Vat Increase (12%) in Realizing Justice and Welfare of the Indonesian People

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Qualitative analysis reveals VAT's effects on purchasing power in Indonesia, suggesting social justice implications.

The 12% VAT increase has raised prices of goods and services, diminishing purchasing power for the lower middle class in Indonesia.
Data shows that higher VAT could lead to increased inflation and shifts in consumption patterns among the Indonesian population.
Qualitative research involved a literature study approach to assess the effects of VAT policies on social welfare and economic equity.
The findings indicate a need for compensation programs to mitigate potential inequality caused by the VAT increase.

Belananda et al. (2025) studied this question.

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