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7 October 2021: Indonesian legislature has passed, validated Carbon Tax, adjustment related to Corporate Income Tax (PPh Badan), Value Added Tax (VAT or PPN), and Tax Amnesty under the draft of Harmonized Laws on Taxation (RUU HPP / Harmonisasi Peraturan Perpajakan)
Indonesia's house of representative, the legislative body has passed, validated the provisions concerning carbon taxation on 7 October 2021.
The carbon taxation is stipulated under the Harmonized Laws on Taxation draft (RUU Harmonisasi Peraturan Perpajakan, "RUU HPP") and will soon be enacted by the government after its administrative process.
Referring to the press conferences, the carbon tax will start to be implemented in 2022, per kilogram CO2e or similar unit.
Along with the carbon tax, RUU HPP also stipulates adjustment related to Corporate Income Tax (PPh Badan), Value Added Tax (VAT or PPN), and the Tax Amnesty.
Let us await the enactment of the said legislation, the official copy of the said law for further review and analysis.
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