Indonesia INDONESIA

Indonesia’s parliament has approved a law to add a top income bracket, increase value-added tax and offer a second amnesty programme next year to encourage non-payers to enter the system. The passage comes as the government tries to expand its revenue base and rein in its budget deficit. “We need our tax system to be healthy, fair and able to act as an instrument for our people’s prosperity,” said Yasonna Laoly, minister for law and human rights. Tax reforms are expected to help the government bring the fiscal deficit under the legal limit of 3% of gross domestic product by 2023.