Tax holiday economy strengthens

Tax holiday economy strengthens
Directorate General of Taxation worry INDONESIA G-20 excluded because of incentives
Businessmen asked the government to give priority to long-term impact of tax incentives in a particular period (tax holiday) in order to achieve economic growth targets.

Vice Chairman of the Indonesian Textile Association, Ade Sudrajat Usman asserted tax holiday facility is often seen only hurt state revenues if the government short-term thinking.

In fact, investment income in the various industrial sectors can be created if the state offers fiscal incentives for business.


"The reality, at this time many people who are unemployed due to no increase investment and industrial competitiveness battered destroyed imports from China," he said, yesterday.

Ade statement was responding to the attitude of the Directorate General of Taxation review tax holiday proposed by considering policies Organization for Economic Cooperation and Development (OECD) and the G-20.

Planned giving the proposed tax holiday Depperin and the Department of Agriculture will be studied first in order not to conflict with the international tax regime.

"If Indonesia would not be excommunicated by the OECD and G-20 because of their orientation today is left of incentives in the form of taxes, such as tax holiday," said Director General of Taxes for Business Mochamad Tjiptardjo yesterday.

Minister of Industry M.S. Hidayat said earlier that the middle of preparing a tax holiday incentives in the 10-15 year period to stimulate investment in specific industries certain areas