A worker produces personal protective equipment in Tangerang city of Indonesia on April 7 (Photo: AFP/VNA)Jakarta (VNA) - Indonesiawill issue larger tax breaks to cover 11 business sectors which are similar tothe incentives given to manufacturing industries to help companies weather impacts from theCOVID-19 pandemic.
Indonesian Minister of Finance Sri Mulyani Indrawati said at a recentteleconferenced press briefing that the 11 sectors are food, trade, electricity, oiland 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 taxexemptions, import tax deferrals and 30-percent discounts on corporate tax. Theywill be included in the fourth stimulus package that the government iscurrently 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 theCOVID-19 economic shocks on citizens.
The Indonesian Governmentrecently announced tax breaks for manufacturing industries worth 22.9 trillionRp (1.46 billion USD). Manufacturing workers with incomes below 200 million Rp peryear would be exempted from paying income tax. Corporate income tax for themanufacturing sector has also been cut by 30 percent and import tax paymentsdeferred.
Besides, the country has also set aside 405.1 trillion Rp fromthe 2020 state budget for medical needs, the social safety net and relief forsmall and medium businesses affected by the pandemic.
Further stimuli will be announced, including for the healthcaresector, the finance minister said./.
VNA
