- Delaying the VAT rate hike while maintaining the stimulus package would support further private consumption growth, especially given the limited recovery in Q4-2024.
- The planned tax amnesty program is expected to provide a one-time boost to liquidity and fiscal revenue in 2025, but the revenue shortfall from the VAT hike delay may still require the government to issue additional debt.
- The government may also try to reduce its spending commitment to offset the expected lost revenue. However, this policy may stunt growth momentum in the short term.
