Indonesian parliament passes major tax overhaul bill

A general view of the city skyline of Indonesian capital Jakarta
FILE PHOTO: A general view of the city skyline of Jakarta, the capital city of Indonesia, August 5, 2021. REUTERS/Ajeng Dinar Ulfiana

October 7, 2021

JAKARTA (Reuters) – Indonesia’s parliament on Thursday passed into law the government’s proposals to overhaul tax regulations, deputy speaker Muhaimin Iskandar said, including raising the value added tax rate next year and scrapping a planned corporate tax cut.

The law also brings in a 35% income tax for those earning more than 5 billion rupiah ($351,000) a year, a new carbon tax and a tax amnesty programme.

($1 = 14,245.0000 rupiah)

(Reporting by Gayatri Suroyo and Fransiska Nangoy)