Indonesia: House hastily passes overhauled tax law

Finance Minister Sri Mulyani Indrawati holds a copy of the March 2019 edition of the APBN Kita booklet during a press conference in Jakarta.(Finance Ministry/Faiz)

Vincent Fabian Thomas (The Jakarta Post) PREMIUM Jakarta   ●   Thu, October 7, 2021

The House of Representatives passed a bill on Thursday to overhaul the country’s tax system after what has been called one of the hastiest deliberations in Indonesia’s modern legislative history. The Harmonized Tax Law (HPP), previously called the Amended General Taxation Law, raises income taxes on the rich, increases value-added taxes (VAT) and scraps a proposal to cut corporate income taxes. It also introduces carbon taxes, a second tax amnesty period and a plan to swap taxpayer identification numbers (NPWP) with identity card numbers (NIK) for easier tracking. The government expects the changes to boost state revenue before the country reinstates the budget deficit ceiling of 3 percent of gross domestic product (GDP) in 2023. Lawmakers lifted the cap last year to accommodate more than a billion dollars of spending for COVID-19 relief.

This article was published in thejakartapost.com with the title “House hastily passes overhauled tax law”. Click to read: https://www.thejakartapost.com/news/2021/10/07/house-hastily-passes-overhauled-tax-law.html.

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