Indonesia to issue larger tax breaks to assist sectors in pandemic
Indonesia will issue larger tax breaks to cover 11 business sectors which are similar to the incentives given to manufacturing industries to help companies weather impacts from the COVID-19 pandemic.
JAKARTA, VNA - Indonesia will issue larger tax breaks to cover 11 business sectors which are similar to the incentives given to manufacturing industries to help companies weather impacts from the COVID-19 pandemic.
Indonesian Minister of Finance Sri Mulyani Indrawati said at a recent teleconferenced press briefing that the 11 sectors are food, trade, electricity, oil and gas, mining and coal, forestry, tourism and the creative economy, telecommunications, logistics, transportation, and construction.
The incentives will be in the form of individual income tax exemptions, import tax deferrals and 30-percent discounts on corporate tax. They will be included in the fourth stimulus package that the government is currently finalising.
She said the COVID-19 shocks could damage businesses and cause massive bankruptcy, noting that the government is trying to focus on stimulus to lessen the COVID-19 economic shocks on citizens.
The Indonesian Government recently announced tax breaks for manufacturing industries worth 22.9 trillion Rp (1.46 billion USD). Manufacturing workers with incomes below 200 million Rp per year would be exempted from paying income tax. Corporate income tax for the manufacturing sector has also been cut by 30 percent and import tax payments deferred.
Besides, the country has also set aside 405.1 trillion Rp from the 2020 state budget for medical needs, the social safety net and relief for small and medium businesses affected by the pandemic.
Further stimuli will be announced, including for the healthcare sector, the finance minister said. - VNA