Indonesia to delay import duties, corporate income tax payments to cope with COVID-19
Indonesia is set to delay import duties and corporate income tax payments for six months while also expediting the repayment of overpaid taxes in new fiscal measures to shield the economy as the COVID-19 outbreak pressures businesses.
HANOI, VNA - Indonesia is set to delay import duties and corporate income tax payments for six months while also expediting the repayment of overpaid taxes in new fiscal measures to shield the economy as the COVID-19 outbreak pressures businesses.
Coordinating Economic Minister Airlangga Hartarto said on March 11 the fiscal stimulus aims to stimulate manufacturing activity, adding that the government is finalising the supporting regulations to enact such policy, according to the Jakarta Post newspaper.
The stimulus package is expected to be implemented in April after preparing the legal background.
Manufacturing industries have complained of raw materials supply disruption that has crippled factories across Indonesia. Twenty to 50 percent of raw materials for the country’s industries are sourced from China, Indonesia’s biggest trade partner.
According to Industry Minister Agus Gumiwang Kartasasmita, the stimulus for import taxes aims to fulfil industry needs of raw materials.
Meanwhile, Finance Minister Sri Mulyani Indrawati said the move to provide these incentives takes aim at relieving industries’ burden caused by the disease.
The government is also set to temporarily exempt manufacturing workers from income tax payment to relieve workers’ burden, she said.
The minister has warned economic growth could weaken to 4.7 percent this year from 5.02 percent in 2019 amid increasing business disruptions caused by the outbreak. - VNA