The Jakarta Post
Indonesia’s Chamber of Commerce and Industry (Kadin) and the Finance Ministry’s tax directorate general plan to help one million micro, small and medium enterprises (MSMEs) register their businesses and receive taxpayer number (NPWP) cards.
Kadin MSMEs and cooperative vice chairman Muhammad Lutfi said on Wednesday that the informal sector needed to be formalized by registering their businesses to the government and becoming taxpayers.
With such a move, he added, MSMEs would get more access to various information, including about financing resources as well as access various government programs, including training.
The government plans to reduce the income tax rate (PPh) for businesses with gross revenue less than Rp 4.8 billion (US$356,877) from 1 percent to 0.25 percent.
“The government plans to reduce the income tax rate for small businesses so we need to support this by ensuring more people have taxpayer numbers,” said the former trade minister on the sidelines of the 2017 Trade Expo Indonesia in ICE BSD on Wednesday. (bbn)