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Government to evaluate tax incentives amid low interest
The Finance Ministry is planning to evaluate several tax incentives because of investors' low interest in tax incentive programs.
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The Finance Ministry's fiscal policy head, Suahasil Nazara. (kompas.com/ Ahmad Fauzi )
The Finance Ministry is planning to evaluate several tax incentives because of investors' low interest in tax incentive programs.
The Finance Ministry’s fiscal policy head, Suahasil Nazara, said that although investors had been paying attention to the incentives, they did not prioritize utilizing them.
“The government provides a lot of incentives but few [investors] utilize them,” Suahasil said in Jakarta on Thursday as quoted by antaranews.com.
“We thought many investors had finally come [to the country] because of the incentives, but the data showed that it was not the reason.”
Investors instead tended to value the ease of obtaining permits and the availability of materials and supporting infrastructure, he added.
In its evaluation, the ministry expects to find better uses of the incentives, the official said, adding that the ministry would discuss the matter with investors as soon as possible to find the right solution.
Finance Minister Sri Mulyani said on Wednesday that the ministry would evaluate various tax incentives, including the tax holiday and tax allowance, which failed to attract businesspeople, despite many of the incentives having been introduced in the mid-2000s. (dea/bbn)
