Central Government Prepares Technical Rules Related To Fiscal Incentives In 2025

Secretary of the Coordinating Ministry for the Economy Susiwijono Moegiarso. (Photo: Doc. ANTARA)

JAKARTA - Secretary of the Coordinating Ministry for the Economy Susiwijono Moegiarso said that the government is in the process of finalizing the provision of fiscal incentives next year, including an analysis of its impact on related sectors and the economy as a whole.

The fiscal incentives in question include government-borne luxury goods sales tax incentives (PPnBM) for the purchase of electric cars and VAT DTP for the property sector.

"Yes, all sectors must be calculated, how many impacts do you have, the sector that has been able to carry out automotive properties that already have a scheme. So it is easier to roll out, and the impact has been clear since the pandemic, right," he said after the Indonesia SEZ Business Forum 2024 event, Monday, 9 December.

In addition, Susi said that the government is conducting a study related to fiscal incentives next year to compensate for the increase in value added tax rates (VAT) to 12 percent in 2025.

"It is being studied to reduce the impact of ppn 12 percent, we are proposing several fiscal incentive schemes, especially DTP VAT and DTP PPnBM," he said.

However, Susi has not been able to provide detailed information regarding when the technical rules will be issued by the government.

Meanwhile, technical regulations will come out in the form of a Minister of Finance Regulation (PMK) which is being prepared.

To note, the increase policy is contained in Law Number 7 of 2021 concerning Harmonization of Tax Regulations (UU HPP) in Article 7 paragraph (1), the 12 percent VAT rate is valid no later than January 1, 2025, after the increase in VAT rates from 10 percent to 11 percent in April 2022.