APSN Banner

Sri Mulyani raises income tax on the rich to 35 percent

Tempo - March 22, 2022

Bisnis.Com, Jakarta – Finance Minister Sri Mulyani Indrawati confirmed that the income tax rate or PPh of the rich people increased to 35 percent this year.

Sri made the statement during the CNBC Indonesia Economic Outlook 2022 held on Tuesday, March 22, as she was asked about the 2022 tax policy by the moderator, Chairul Tanjung who is the chair and founder of CT Corp.

Sri explained that the government took measures of tax reform including through the enactment of Law No. 7 of 2021 concerning the harmonized tax regulation or UU HPP.

One of the provisions stipulates an increase in the income tax rate to 35 percent for individuals who have an income of more than Rp5 billion per year. Previously, the crazy rich Indonesians were subject to a 30 percent tax, meaning there is a hike of 5 percent.

"The income tax policy is clear. Those who have no income do not pay taxes. Pak CT (Chairul Tanjung) who is rich, I increase the tax to 35 percent," Sri said on Tuesday.

Chairul Tanjung put a smiling face when Sri made the answer. According to Forbes records, Chairul's wealth reaches around Rp79 trillion coming from retail business, financial services, hospitality services, and the media.

"This [tax] is for the people," said Sri Mulyani.

The HPP Law does not only increase taxes for high-net-worth Individuals. The government applies a 5 percent income tax rate for taxpayers with zero income up to Rp60 million. However, the non-taxable income is set at Rp54 million per year.

Additionally, there is a 15 percent income tax rate for people who earn Rp60 million-Rp250 million per year, 25 percent for people whose income Rp250 million-Rp500 million per year, 30 percent for people whose income Rp500 million-Rp5 billion per year, and the highest rate of 35 percent for those who earn more than Rp5 billion per year, such as Chairul Tanjung.

Source: https://en.tempo.co/read/1573646/sri-mulyani-raises-income-tax-on-the-rich-to-35-percen