Indonesia’s tax reform – positive, but not enough, says ANZ

JAKARTA - Indonesia's Parliament has approved a new tax law, which, according to ANZ Bank researchers, signals Indonesia's commitment to fiscal discipline -- and paves the way towards a more credible consolidation path.

"However, several tax measures have been watered down from the initial proposal, amid concerns about the negative impact on growth," the research report says.

"Barring a surprisingly strong take-up on the second round of the tax amnesty programme, returning the deficit to 3% of GDP by 2023 is likely to remain a challenge."

www.anzresearch,com (ATI).