Indonesia Looking at Tax Increases in Fiscal Reform Push

May 4, 2021, 1:59 PM

Indonesia will raise its value-added tax rate and introduce an excise tax on plastics to mend its finances, Finance Minister Sri Mulyani Indrawati said Tuesday.

The island nation needs to expand its tax base as part of continuing fiscal reforms in 2022 as it rebuilds its state finances in the wake of the Covid-19 pandemic, she told a forum. Southeast Asia’s largest economy aims to narrow its budget deficit to 5.7% of GDP this year from 6.1% last year. President Joko Widodo has pledged to return to the deficit cap of 3% of GDP by 2023, from the projected ...

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