JAKARTA: Indonesia's finance minister on Monday laid out a government proposal for an overhaul of tax regulations, including introducing a programme to report undisclosed assets, bringing in a carbon tax and hiking the VAT rate.
The minister proposed increasing the base value added tax rate to 12 per cent, from 10 per cent currently, applying a 5 to 25 per cent rate range for some goods and services, and removing most exemptions. To limit the impact on the poor, she proposed more subsidies. She also proposed a new carbon tax of 75 rupiah per kg of CO2 equivalent and an excise tax for all plastic products.The minister unveiled a programme to allow people to report undisclosed assets following Indonesia's previous tax amnesty in 2016 to 2017.
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