Indonesia's Ministry of Finance has announced that the House of Representatives approved the Law on the Harmonization of Tax Regulations on 7 October 2021, which contains the tax reform measures recently agreed to with the government for the 2022 Budget. The measures include:
- An increase in the standard VAT rate from 10% to 11% from 1 April 2022 with a further increase to 12% from 1 January 2025;
- The removal of VAT exemptions so that only certain goods and services are exempt, including bas…