For The Sake Of 25 Million Retail Workers, The Government Adds VAT Incentives For Shop Rentals Until October 2021

JAKARTA - The government through the Ministry of Finance (Kemenkeu) provides additional incentives in the form of Government Borne Value Added Tax (PPN-DTP) of 10 percent targeting the retail trade business sector.

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said that this incentive was stated through PMK Number 102/PMK.10/2021 concerning Value Added Tax (VAT) for the delivery of room or building rental services to retailers borne by the government on July 30, 2021.

"This additional incentive is part of the National Economic Recovery (PEN) program and will be given for three months, from August to October 2021. The government hopes that this incentive can further help the burden on the retail sector during the pandemic," he said in a press statement, Tuesday, August 3. .

Febrio noted, based on the National Labor Force Survey (Sakernas) for the February 2021 period, this business segmentation is estimated to absorb tens of millions of workers.

“The trade sector employs 25.16 million workers. We hope that the support provided can help entrepreneurs in this sector maintain the sustainability of their business and their workforce," he said.

Febrio added that the PPN-DTP incentive for Room Rental will help retail sector players who are heavily affected by PPKM, especially retail traders who sell goods and/or services directly to end consumers.

For information, the allocation of incentives is not limited to retail traders located in shopping centers, but also in people's markets, shopping complexes, apartments, hotels, educational environments, office environments, and public transportation facilities so that they are expected to provide benefits for retail traders in general. wide.

Previously, the government had provided various tax incentives for the business world, such as PPh 21 DTP, final PPh for DTP MSMEs, exemption from PPh 22 for imports, reduction in PPh 25 installments, pre-refund of VAT, lowering of Corporate Income Tax rates for all taxpayers, VAT for DTP Property, and PPnBM cars.

Currently, the total allocation of the 2021 APBN for tax incentives for the business world in the PEN program is IDR 62.83 trillion.

"It is hoped that the PPN-DTP on room rentals will be used optimally and can be a complement to various policies that have been issued by the government to protect the community and national economic recovery," he concluded.