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Tax allowance rule revised to include more sectors
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Finance Ministry fiscal policy head Suahasil Nazara (kompas.com/ Ahmad Fauzi )
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fter issuing a revised regulation on tax holidays, the government is now revising a regulation on tax allowance to expand the number of sectors that are eligible to receive the fiscal incentive and simplify the procedure of granting it.
“The government will review the sectors on the existing list […]. The review process will involve relevant offices and institutions,” said Finance Ministry fiscal policy head Suahasil Nazara in Jakarta on Monday as as reported by kontan.co.id.
The Office of the Coordinating Economic Minister is expected to organize meetings with various business sectors to hear input before revising Government Regulation No. 18/2015 on tax allowance.
Suahasil said the government would consider granting certain business sectors, such as those in special economic zones, the fiscal incentive.
The Office of the Coordinating Economic Minister’s deputy for macroeconomic and financial affairs, Iskandar Simorangkir, said that the number of business sectors eligible for the tax allowance was previously expanded from 140 to nearly 300.
Suahasil said that after the revision, the government would accelerate the process of deciding on eligible applicants, as it would be adjusted to the newly launched online single-submission system.
However, the official added, the government would not change the tax allowance incentive scheme and would still refer to the prevailing income tax law, which ruled that taxpayers who invested in certain sectors and high-priority regions could obtain a tax deduction of up to 30 percent. (bbn)
