The government is targeting to release an omnibus law on taxation in 2020 as part of the country’ effort to drive the economy. The draft of the new bill will send to the House of Representatives (DPR) in December. Finance minister Sri Mulyani Indrawati explained, the new law will regulate income tax, value-added tax, regional tax and regional user fees, and general tax provisions. But, she assured the existing law will still exist.
The minister said the omnibus law will revise the current tax code, income tax law, value-added tax law, and regional tax and retribution law. The new law will cut corporate income tax to 22 percent in 2021 and 2022 from 25 percent today. The tax will be lowered again to 20 percent from 2023 onward.