Increasing Tax on Bank Interest: the Risks Involved

The government has increased taxes on any interest derived from bank deposits, savings accounts and discounted SBIs. There was no way of putting off these increases any longer, so why are there so many complaints from so many people?

January 16, 2001

There has really only been bad news for the people of Indonesia so far this year. Some of it is due to an increase in taxes, including land and building tax (PBB), income tax (PPh), value-added tax (PPN) and luxury goods sales tax (PPn-BM). Originally, there was also to have been an additional tax on agricultural produce, but President Abdurrahman Wahid cancelled this at the last minute.

The government has no option but to increase taxes because

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