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

JAKARTA: 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.