The government has officially set an increase in the Value Added Tax (VAT) rate to 11 percent, which is effective on April 1, 2022. The rate increase is carried out to encourage tax revenue which is the main source of revenue in the Indonesian State Budget (APBN) to support economic needs and community prosperity. This policy note is focused on evaluating whether the policy is appropriate in the post-pandemic economic recovery condition by considering several macroeconomic aspects.