Indonesia Considers Revamping Value-Added Taxation Structure

May 10, 2021, 11:30 AM

Govt is evaluating several strategies to ramp up tax revenue, including raising value-added tax rate with new multi-tariff structure, Finance Ministry’s Director General of Tax Suryo Utomo said in a briefing on Monday

  • A change to multi-tariff VAT structure will require a law revision
    • Govt to also discuss with businesses and stakeholders on the VAT rate plan
  • NOTE: Indonesia currently imposes a single tariff VAT of 10% on goods and services
  • Govt only collects 60% of VAT that should be collected, while VAT revenue accounts for 42% of total tax income in 2020
    • Many goods and services aren’t subject to ...

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