JAKARTA - Minister of Finance (Menkeu) Sri Mulyani chose not to speculate regarding the continuation of business tax incentives next year.
According to him, the provision of facilities will be adjusted to the conditions that occurred at that time, mainly referring to the economic conditions affected by the COVID-19 pandemic.
“If the recovery momentum is getting better and the industry condition is getting better, the incentives will gradually be faced out. (The decision on incentives) will be seen from the data available at the time," he said at a press conference on our State Budget which was broadcast virtually, Wednesday, August 25.
The Minister of Finance added that the government was quite helped by the support of the parliament which provided space to produce strategic policies in response to tackling the impact of the pandemic on the economic sector.
"The DPR is quite supportive from the flexible side for responsive policies while remaining accountable for various important steps," he said.
For information, the government through the Ministry of Finance has issued a number of tax and tax incentives to ensure the economy continues to run.
Meanwhile, the two tax incentives that are considered the most significant in boosting consumption are the Government Borne Value Added Tax (PPN DTP) facility for the property sector and the discount on Sales Tax on Luxury Goods (PPnBM) for the automotive industry.
For information, the VAT incentive for DTP property is confirmed until December 2021 after it expires in August. This policy is contained in the Minister of Finance Regulation number 103/PMK.010/21.
The tax facility is given in the form of relief from paying VAT of 100 percent for houses or units with a maximum selling price of Rp. 2 billion, and 50 percent for houses or units with a selling price of above Rp. 2 billion to Rp. 5 billion.
Meanwhile, the automotive PPnBM discount applies a discount of up to 100 percent for new purchases of 1,500cc passenger cars. The regulation is valid until August 31, 2021. Furthermore, this segment will receive a 25% discount facility until December 31, 2021.
In addition, the PPnBM discount is also applied to vehicles with an engine cubication of 1,500 cc to 2,500 cc at a rate of 50 percent for the tax period from April to August 2021. Furthermore, for September to December, the discount given is 25 percent.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
