JAKARTA, Oct 7 (Reuters) - The impact of Indonesia’s new tax measures on inflation will be limited and the expected increase in government revenues will support economic recovery from the COVID-19 pandemic, Law Minister Yasonna Laoly said on Thursday. “With the increase of value added tax rate by one percentage point, the impact on inflation will be limited and minimal,” he told parliament. He said the measures’ “net benefit” for the economy will be “very positive”. Earlier on Thursday, parliament passed a major tax overhaul that included raising the rate of VAT to 11% from 10% next April. (Reporting by Gayatri Suroyo and Fransiska Nangoy; Editing by Clarence Fernandez) Our Standards: The Thomson Reuters Trust Principles.
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