Indonesia passes major tax overhaul bill, VAT to rise next year

Indonesia passes major tax overhaul bill, VAT to rise next year

Jakarta, Indonesia. Photo by Tom Fisk on Pexels.

Indonesia’s parliament approved a law on Thursday for one of the country’s most ambitious tax overhauls, including raising the value-added tax rate next year, a new carbon tax and cancelling a planned corporate tax cut.

The law is aimed at optimising revenue collection and improving tax compliance after state coffers took a big hit last year due to the COVID-19 pandemic, Law Minister Yasonna Laoly told parliament after the vote.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter