Original title: Indonesia’s tax reform bill will increase the income tax rate of the rich
China News Agency, Jakarta, October 7 (Reporter Lin Yongchuan) The Indonesian National Assembly passed a tax reform bill on the 7th, which will increase the value-added tax rate and the income tax rate of the wealthy next year.
The tax reform bill stipulates that from April 1, 2022, the value-added tax rate for domestic goods and services in Indonesia will be increased from the current 10% to 11%, and will be further increased to 12% in 2025; the previous corporate income tax will be abolished The policy of reducing the exemption to 20%, the corporate income tax rate will remain at 22% next year; the personal income tax threshold will be increased from 50 million rupiah per year to 60 million; for individuals with an annual income of more than 5 billion rupiah, the personal income tax rate will be increased from 30 % Increased to 35%; a carbon emission tax is imposed on individuals or entities that purchase carbon-containing products or engage in activities that generate carbon emissions.
The Minister of Justice and Human Rights of Indonesia, Yasonna, said after voting to pass the bill in Parliament that Indonesia’s treasury has been hit hard since the outbreak of the new crown last year. The tax reform bill aims to optimize the tax structure and increase the revenue of the treasury.
The Indonesian government predicts that the implementation of the tax reform bill will increase national fiscal revenue before the budget deficit ceiling is restored in 2023. In response to the economic and social impact of the epidemic last year, the Indonesian Parliament temporarily lifted the national budget deficit ceiling of “3% of GDP”. (over)
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