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View all search resultsBusiness association Apindo has pointed to delayed tax refunds potentially impacting cash flow and liquidity to affect companies' wider operations.
ewly installed Finance Minister Suahasil Nazara has assured businesses they will be refunded for any overpaid taxes provided they were “legally entitled to them”, following an official review.
“If it is the right of a business, [a refund] will certainly be given,” Suahasil told a press conference on Friday.
He said the Directorate General of Taxes (DJP) was processing tax refunds in line with prevailing rules while the ministry continued to push businesses to comply with related regulations.
Suahasil said he had instructed tax director general Bimo Wijayanto to improve the management of tax refunds, including communicating with businesses about applicable procedures.
“The DJP is carrying out refund management in accordance with the provisions, but we are asking for compliance from all economic actors so that refunds are used in accordance with the existing rules,” the minister said.
His statement comes in response to business groups that have called for a review of the tighter policy on tax refunds, noting that delays in refunding tax overpayments could constrain cash flow and limit room for expansion.
Shinta Widjaja Kamdani, chairwoman of the Indonesian Employers Association (Apindo), said the tighter refund policy over the past year under Suahasil’s predecessor Purbaya Yudhi Sadewa had created difficulties for companies in managing operations and planning expansion.
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