The COVID-19 pandemic, Members Of The House Of Representatives Of The PKS Faction Says Luxury Goods Tax Incentives Are Right On Target

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JAKARTA - Member of Commission XI DPR RI (The House Of Representatives) Anis Byarwati reminded the government that the tax incentive policy should consider aspects of inequality in society. Especially when the COVID-19 pandemic was still ongoing.

She said this was in response to the plan of the Coordinating Minister for Economic Affairs Airlangga Hartarto to provide sales tax incentives on luxury goods (PPnBM) for motor vehicles or cars and incentives for housing to contribute as much as one percent to economic growth.

"Tax incentives in the midst of a pandemic are a must but must pay attention to many aspects. And most importantly, they must be on target", said Anis Byarwati in Jakarta, Friday, March 12.

Furthermore, Anis revealed, the current economic condition of society is still very problematic, especially in terms of inequality. It can be seen from the Gini ratio that increases with the increase in the percentage of poor people.

In September 2020, the Central Statistics Agency (BPS) recorded that the level of expenditure inequality of the rich and poor in Indonesia as measured by the Gini ratio reached 0.385 in September 2020. This figure, said Anis, increased by 0.004 points when compared to the March 2020 Gini ratio of 0.381.

"Therefore, the tax incentives provided must be right on target and do not harm people's trust in the government", said Anis.

Anis hopes that various facilities or facilities in the form of tax spending can advance the national economy, not spoil it.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto said that the provision of Sales Tax on Luxury Goods (PPnBM) incentives for motorized vehicles or cars and incentives for housing contributed as much as one percent to economic growth.

"Directly we see that we can add 0.9 to 1 percent growth with the multiplier effect", said Coordinating Minister Airlangga Hartarto during an online press conference in Jakarta, Monday, March 1.

With this incentive, he said, the automotive industry sector has the potential to receive IDR 360 trillion in financing to achieve utilization and sales of close to one million motor vehicles.

Meanwhile, the property sector received financing of IDR 900 trillion to achieve good capacity and sales.

Airlangga also confirmed that the economic impact of providing PPnBm, PPN, and zero percent DP incentives must be supported by handling COVID-19 and the vaccination process.