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More industries eligible for tax incentives
The Finance Ministry expanded its incentive program on the belief that the COVID-19 pandemic is still weighing on businesses.
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Finance Ministry Sri Mulyani Indrawati speaks at the House of Representatives on Sept. 13, discussing a draft bill on fiscal relations between centers and regions (RUU HKPD) and the bill on the general provisions on taxation (RUU KUP). (Finance Ministry/Public relation team)
T
he Finance Ministry has expanded its list of industries eligible for corporate tax cuts, zero import duties and value-added tax (VAT) restitutions, saying that the COVID-19 pandemic was still weighing on businesses.
Finance Ministerial Regulation No. 149/2021 issued on Oct. 26 increases the number of companies eligible for the corporate tax incentive to 481 from 216, the import duty incentive to 397 from 132 and VAT incentive to 229 from 132.
The government added more industries to facilitate those in need of support, as the pandemic was still aggravating the country’s economic stability and business productivity, according to Neilmaldrin Noor, public relations director at the taxation directorate general of the Finance Ministry.
“The government continues to monitor and evaluate which industries are still lagging in their recovery so that we can provide support and incentives,” Neilmaldrin said in a press release on Wednesday.
The pandemic has subsided since the peak of the Delta wave in July, and the government has recorded a rebound across multiple sources of tax revenues as of September.
Read also: New tax law expected to raise tax revenue by at least 9%
Corporate tax revenue stands at Rp 128.35 trillion (US$8.98 billion) as of September, marking a 7 percent year-on-year (yoy) increase, Finance Ministry data shows. Over the same period last year, revenue from corporate tax declined by 30.4 percent yoy.
