Minister Of National Development Planning/Bappenas Rejects The Idea Of Tax Holidays For Train Support Investors In Bali

Minister of National Development Planning/Head of Bappenas Suharso Monoarfa in Denpasar, Bali, Wednesday, May 29, 2024/PHOTO: Dafi-VOI

DENPASAR - Minister of National Development Planning/Head of Bappenas Suharso Monoarfa rejected the idea of the Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia regarding the provision of tax holidays or tax holidays for selected investors in supporting infrastructure development projects in train transportation to be built in Bali.

"If I want no tax holidays because of those difficulties, our fiscals are too many holidays, too many are closed, sorry," he said in conveying Bali's investment interest in Urban Rail and Associated Facilities in Denpasar, Wednesday, May 29.

In the context of the investment auction for supporting infrastructure development in the subway area, the Minister of National Development Planning/Head of Bappenas sees that the Minister of Investment is quite helpful in making it easier for selected investors in terms of licensing.

Because selected investors will have benefits in the form of authority in managing even more than 90 years, and even better if it starts faster.

"But when it comes to licensing assistance, import duties, why not? I agree with that, but if the tax allowance and tax holidays, I even hear that the IRR (internal rate of return) is good, so don't give it a tax holiday like that," said Suharso.

Dalam babak baru pengembangan pariwisata di infrastruktur transportasi itu, sudah tercatat delapan investor dari luar dan dalam negeri yang menyatakan minatnya.

The Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia welcomed the project financing system, because it became a pilot because it did not use APBN or APBD costs in its work.

For this reason, in his speech Bahlil admitted that his ministry was ready to help with licensing for winning investors and even provided tax holiday incentives that were not approved by Minister Suharso.

"We are committed to providing incentives because this is one of the pioneers, we will provide incentives in the form of tax breaks, we will also check later, if we have to give tax holidays as long as they comply with the rules, we will give them," he said.

According to Bahlil Lahadalia, investors who downstream investments above Rp20 trillion will receive a tax holiday of 15 years, so that investors for supporting infrastructure projects for trains in Bali are entitled to receive it.

Bahlil even admitted that he would provide tax-free incentives for all imported goods included in the context of building the support of the train.

"Because it is included in the pioneer, why can't we consider this one to be given an incentive so that the FS enters and the profit is fast, but if it's profit, don't forget to pay taxes, or don't make a profit saying it's a loss, so we will definitely check it," he said.