Jakarta, Aug. 31 -- The Chair of Commission XI of the House of Representatives, Mukhamad Misbakhun, has proposed lowering the Value Added Tax (VAT) rate from 11 percent to 10 percent to ease the public's financial burden.

"A lower VAT rate will encourage consumer spending and demand for goods, which in turn will boost productivity in the real sector," he said in a statement, Sunday.

Misbakhun acknowledged that while the reduction may not have a significant immediate impact, it could be offset by an increase in transaction volumes.

He also suggested that certain agricultural products be taxed at 8 percent to strengthen the agricultural sector.

He added that such fiscal policies are essential for ensuring that lower-income communities g...