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Govt mulls income tax relief for labor-intensive industries
Apindo has proposed income tax relief for employees in labor-intensive industries, arguing the measure is necessary to maintain household spending without burdening companies amid an economic downturn.
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Employees work at a garment factory in this undated file photo. (Antara/Saptono)
T
he government is considering a proposal to waive income tax for employees in labor-intensive industries in response to a call for measures to aid a manufacturing sector that is under severe economic strain.
The Manpower Ministry said on Thursday that it had received feedback from the Indonesian Employers Association (Apindo), which has called for tax relief to help ailing industries experiencing a significant downturn, including the textile sector.
“We are currently discussing the proposal for an income tax incentive,” Manpower Ministry secretary-general Anwar Sanusi said on Thursday, as quoted by Bisnis.com.
“Once the review is completed, we will provide an update.”
Read also: Rescue plan kicks off for bankrupt textile firm Sritex
Noor Faisal Achmad, head of macro policy at the Finance Ministry’s Fiscal Policy Agency, said his office was checking whether it had received a formal request for tax relief from the association.
“It appears that we haven’t received the letter from Apindo yet, but I’ll verify it,” he said after attending the same meeting.
