Tax Overhaul Puts Indonesia’s Budget Deficit Goals Back on Track

Indonesia’s planned tax overhaul could raise as much as $17.5 billion in additional revenue and put the government back on track to return its budget deficit under the legal limit.

The bill, which is set to be passed in parliament this week, should generate 120 trillion to 250 trillion rupiah ($17.5 billion) of extra income, said Maybank Kim Eng Research Pte. economists Chua Hak Bin and Lee Ju Ye. That’s equivalent to around 0.7% to 1.5% of gross domestic product.

Indonesia Eyes Top Income Tax Bracket, Raises VAT in New Bill

The government pledged to return its fiscal deficit ...