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Govt extends COVID-19 tax incentives as cases soar
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Helping hand: A registration officer at the Menteng Dua tax office in Jakarta helps a taxpayer on March 3, 2021. (JP/Yulianto Catur Nugroho)
T
he Finance Ministry has extended several pandemic-related tax incentives until the end of this year, as the government seeks to buttress the economic recovery.
The move covers incentives to alleviate the COVID-19 impact on businesses, namely an exemption of income tax on imports for 72 industries, as well as reduced income tax for 157 industries, including construction services.
It also includes tax incentives for the health sector based on a separate regulation, namely waived value added tax (VAT) on goods used in the COVID-19 response, an exemption of income tax on imports and an exemption of personal income tax for healthcare workers.
All of those tax incentives were initially set to end after the first half of the year but have now been extended for another six months.
“The government hopes this extension can support the recovery and accelerate the COVID-19 pandemic response,” Taxation Directorate General spokesperson Neilmaldrin Noor said in a statement on Friday.
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The extension comes as Indonesia is experiencing another surge in COVID-19 cases. On Saturday, it booked almost 5,000 new daily cases, a drastic increase from 174 new daily cases two months prior.
