Tax Incentives Flow To Conglomerates, Government Asked To Review

Rupiah (Photo: Antara)

JAKARTA - The Center of Economic and Law Studies (Celios) encourages the government to re-evaluate the tax incentive policy which is considered more profitable for conglomerate groups.

Celios Jaya researcher Darmawan emphasized that the tax incentive policy should still stand on the principle of justice.

"The government needs to end the pro-conglomerate tax incentives," he said at the CelIOS discussion event, Tuesday, August 8.

Jaya reminded that by 2024 Celios had released a report on inequality which showed a tendency for most tax incentives to flow to large companies.

According to him, this condition is still considered relevant today, as reflected in the government's tax expenditure report, most of the incentives have flowed to the big business world.

"More precisely, the tax expenditure, which is around Rp. 400 trillion to Rp. 500 trillion, has Rp. 137.4 trillion, this is taken from the 2024 data, it is for indirect or we call it hidden subsidy for the business world, the climate and investment," he said.

He detailed that the form of incentives includes tax holidays, tax allowances, and tax reductions for extractive sectors such as bioenergy and mining.

"We read the tax groceries report there in detail, for whatever our tax groceries are. Now it turns out that the Rp137 trillion is for the business world, one of which is for tax holidays, tax allowances, or tax reductions for the extractive sector such as the bio-internal, this needs to be reviewed," he said.