Taxes
Indonesia Sets Out Tax Plan With New Income Bracket, Amnesty
- VAT could be raised to 12% from 10%, with fewer tax exemptions
- Income tax changes target ultra-rich and loss-making firms
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Indonesia began discussing a tax overhaul proposal with parliament, with plans to increase the value-added tax, impose a new income bracket and target loss-making firms, while offering potential amnesty.
The general VAT covering most goods and services will be raised to 12%, from 10%, while certain items can carry variable 5% to 25% rates depending on the price, said Finance Minister Sri Mulyani Indrawati on Monday. The government included a tax amnesty program in the draft submitted to the parliament, even if she didn’t read the details out during the hearing.