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Indonesia will propose corporate tax cut after tax amnesty program

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Indonesia president Joko Widodo said the government will propose a cut in the corporate tax rate to improve competitiveness once a tax amnesty program expires.

[JAKARTA] Indonesia president Joko Widodo said the government will propose a cut in the corporate tax rate to improve competitiveness once a tax amnesty program expires.

"We are in a competitive era, if we are not brave, investors will leave," Mr Joko told reporters on Monday. The amnesty is due to expire at the end of March next year.

Mr Joko said the government was still calculating what the appropriate tax rate should be. The finance ministry has previously said tax may be lowered to 20 per cent from 25 per cent currently.

REUTERS