Bye-Bye Tax Incentives, Airlangga's Men Call The Government To Remove Fiscal Stimulus In The 2022 PEN

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Ministry for the Economy said that tax incentives for the 2022 period will be abolished. This can be seen from the details of the National Economic Recovery Program (PEN) next year which does not include the business incentive cluster in the plan.

"The allocation of the PEN program in 2022 will be directed at boosting the economy through 4 Program Clusters, including Health Rp. 77.05 trillion, Community Protection Rp. 126.54 trillion, Priority Program Rp. 90.04 trillion, and MSME and Corporate Support Rp. Communications, Information Services, and Conference Bureau of the Coordinating Ministry for the Economy Haryo Limanseto in a press statement, quoted Monday, November 22.

However, Haryo ensured that the government would maintain the flexibility of the state budget by continuing the PEN program.

"The implementation of the PEN Program will be continued in 2022 to anticipate the expansion of the impact of COVID-19 in 2022. The government has provided a budget allocation of IDR 321.2 trillion for next year," he continued.

Just so you know, the amount of the 2022 PEN funds amounting to Rp321.2 trillion is much lower compared to the 2021 period which amounted to Rp744.77 trillion. In fact, this year's corona antidote funds were recorded to have increased from the previous Rp. 699 trillion at the beginning of the year as a response to the widening of the delta variant in the country.

Through the decision to abolish business incentives in 2022, it is confirmed that the government will abolish PPh 21 for workers, MSME final PPh, exemption from import PPh 22, and reduce PPh 25 installments.

Then, the preliminary refund of VAT, reduction in corporate income tax rates, property VAT and automotive PPnBM borne by the government, as well as import duties.

All these incentives are included in the fiscal stimulus of this year's National Economic Recovery Program.