Indonesia Parliament commission, government agree on major tax changes

[JAKARTA] The Indonesian Parliament's finance commission and the government have reached an agreement on major tax changes after months of deliberating a new bill, including changing the value added tax rate, a finance ministry spokesperson said on Thursday.

"The government and Parliament ... are committed to support the lower income groups, so basic necessities, education, health and social services will receive a VAT exemption facility," Yustinus Prastowo said on Twitter.

The version that the commission approved will be brought to a wider parliamentary vote, but the commission's endorsement is usually passed.

REUTERS