Latest! The 2022 PEN Budget Set At IDR 414 Trillion, The Hilal Of Tax Incentives Hasn't Been Seen

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Minister for the Economy Airlangga Hartarto reported that the latest development of the 2022 National Economic Recovery Program budget was Rp. 414 trillion.

According to him, this figure is divided into three main clusters, namely health of Rp. 117.9 trillion, public protection of Rp. 154.8 trillion, and the cluster of strengthening economic recovery of Rp. 141.4 trillion.

"The allocation of health care and community protection will be adjusted in line with developments in handling COVID-19," he said through a virtual channel, Tuesday, December 14.

One thing that is interesting is the lack of clarity on the sustainability of various tax incentives for next year. In fact, the realization of these business incentives will be the highest in the 2021 PEN and it is even said that it will penetrate 112 percent of the set ceiling.

Coordinating Minister Airlangga only provided certainty that fiscal facilities would be attached to imported health goods that support the needs of handling the COVID-19 pandemic in the country.

Just so you know, business incentives for the 2021 period are focused on three sectors. First, the recorded PPnBM discounts have reached Rp. 2.9 trillion as of December 10.

Then, the exemption of PPh 22 imports of Rp. 17.4 trillion, as well as the reduction of PPh 25 installments of Rp. 25.1 trillion.

With no official reference from the government regarding the target of tax incentives for the coming period, it is very likely that the prices of a number of goods will rise in line with the determination of normal tariffs, such as the selling price of cars and property.