The government plans to revise five tax laws, the bills for which would be soon submitted to the House of Representatives, an official has said.

The five are the General Taxation System (KUP) Law, the Income Tax (PPh) Law, the Value Added Tax (PPN) Law, the Stamp Duty Law and the Land and Building Tax Law, said the Directorate General of Taxation’s international tax director, John Hutagaol.

The tax reform will support the plan to increase Indonesia’s tax ratio (income tax compared to gross domestic product) to 16 percent from the current 11 percent, he added.

“The bills are already finished. We need to find the right time to discuss them with the House,” he said in Jakarta on Tuesday, adding that the revision of the laws, especially the one on income tax, has been anticipated by many taxpayers.

Finance Minister Sri Mulyani Indrawati promised to calculate a new formula for taxes, as well as reform the tax office administration itself.

“We will discuss the new formula. Hopefully it can be balanced with what people want and government’s need to fund development programs,” she said.

source: thejakartapost