Govt Plans to Provide Massive Tax Cuts
In a bid to attract more investment and increase Indonesia’s export value, the Government has announced plan to immediately provide massive tax cuts in several business sectors.
Minister of Finance Sri Mulyani Indrawati on Wednesday (19/6) said that President Joko “Jokowi” Widodo has instructed Ministry of Finance to provide more tax incentives for several investment instruments.
“The Government is conducting policy analysis on tax holiday, tax allowance, and amendment to Law on corporate income tax. We also calculate fiscal risks and create implementation plan for the tax cut,” Sri Mulyani said after attending the Limited Cabinet Meeting on investment, export, and taxation at the Presidential Office, Jakarta.
On that occasion, the Minister expressed hope that the Government Regulation (PP) on the super deduction tax will be issued in the near time. She also asserted that there is also the exemption of VAT (Value Added Tax) for aircraft leasing from abroad which aims to ease the burden on domestic airlines.
Sri Mulyani further said that the Government will lower final income tax rates for bond interest in infrastructure from 15% to 5%.
In the property sector, she added, the Government will also increase the non-VAT (Value Added Tax) limit for affordable housing based on their respective regions. Furthermore, the final income tax rate of luxury residence will also be reduced from 5% to 1%, and the validation of income tax for land sales will be simplified.
“These efforts will be made to improve the property sector,” she added. (FID/JAY/ES)
Translated by: Syarifah Aisyah
Edited by: Ridwan Ibadurrohman/M. Ersan Pamungkas