The Harmonized Tax Law Amends Provisions On Excise

The newly enacted Law No. 7 of 2021 dated October 29, 2021, on the Harmonization of Tax Regulations (the "Harmonized Tax Law") amends several existing regulations on the Taxation Law and introduces several new regulations. As the Harmonized Tax Law adopts the Omnibus types (Law No. 11 of 2020 dated November 2, 2020, on Job Creation), its coverage includes the following: General Provisions of Taxes (Ketentuan Umum Perpajakan), Income Taxes (Pajak Penghasilan), Value Added Taxes (Pajak Pertambahan Nilai), Voluntary Disclosure Program (Program Pengungkapan Sukarela), Carbon Taxes, and Excise. This Newsflash explains the amendments relating to the Excise.

The Harmonized Tax Law amends several provisions of Law No. 11 of 1995 dated December 30, 1995, on Excise as lastly amended by Law No. 39 of 2007 dated August 15, 2007 (the "Excise Law").