Indonesia will lower income tax rate for individuals: finance minister

[JAKARTA] Indonesia plans to lower income tax rates for individuals, the finance minister said on Tuesday, in its latest bid to get better tax compliance.

"We will make income tax for individuals and companies more competitive," finance minister Bambang Brodjonegoro said.

Previously, the minister has said some rates for companies should be lowered.

Current tax rates for individuals range from 5 to 30 per cent.

He said the current income tax law will be revised, but did not give any details of what changes he would seek or on a possible timeline for submitting proposals to parliament for changing tax laws.

Indonesia faces a significant budget revenue shortfall this year, which has spurred efforts to increase tax collection from individuals.

There are only 27 million registered taxpayers in Indonesia when there should be 120 million, according to the tax office.

REUTERS