Gov’t to Expand Sectors for Tax Stimulus
Policy package to expand to 18 real sectors has been reported to President Joko “Jokowi” Widodo in a Limited Meeting, Wednesday (22/4), according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
“(The Limited Meeting) has decided several stimulus regarding Smallholder Business Credit (KUR), state-owned community development institution (PNM), and state-owned pawnshop Pengadaian which will be explained in detail by Minister of Finance. In addition, sectors subject to income tax payment (PPh 21), import income tax (PPh 22), and income tax for business (PPh 25) will be expanded,” the Coordinating Minister said in a press statement.
The expansion of real sectors covers:
- Agriculture, forestry, and fishery sectors which have 100 Indonesian Standard of Industrial Classification (KBLI);
- Mining and excavation sectors which have 27 KBLI;
- Manufacturing industry which has 127 KBLI;
- Electricity, gas, steam sectors which have 3 KBLI;
- Management of water, wastewater, waste recycling, and remediation sector which has 1 KBLI;
- Construction sector which has 60 KBLI;
- Wholesale and retail market; car and motorcycle repair and maintenance which have 193 KBLI;
- Transportation and warehousing sector which has 85 KBLI;
- Accommodation, food and beverage sectors which have 27 KBLI;
- Information and communication sector which has 36 KBLI;
- Financial and insurance sector which has 3 KBLI;
- Real estate sector with 3 KBLI;
- Professional services for scientific and technical sector which has 22 KBLI;
- Rental, manpower, and travel agency for tourism sector and other business which has 19 KBLI;
- Education sector with 5 KBLI;
- Health sector and social activity which has 5 KBLI;
- Tourism, art, entertainment, and recreation sectors which have 52 KBLI;
- Other sector that provides service (3 KBLI) and enterprises in bounded areas.
“There are 440 KBLI regulated in the last regulation of minister of finance. The addition KBLI proposed to the ministry reaches 761 classifications, including 118 of incentive expansion. Thus the total number of KBLI in the Regulation of Minister of Finance Number 23 is 1,083,” he said.
Each sector has been classified into different income taxes (PPh 21, PPh 22, and PPh 25). The Minister of Finance will further explain about exemptions from income tax, import duty, and luxury tax (PPnBM) for hand sanitizer, test kit, medicines and vitamins, medical equipment, protective personal equipment in the Regulation of Minister of Finance Number 31 and 34,” the Minister concluded. (FID/EN)
Translated by : Rany Anjany S
Reviewed by: Yuyu Mulyani