Artificial Sweeteners Called Tax Holiday

Artificial Sweeteners Called Tax Holiday - Tax holiday is believed to be a magnet decoy direct investment, in the middle of the image and investment climate is still blurry. Interests tug makes this policy more and more blurred.

That is why, despite the Ministry of Finance has rejected the idea of tax holiday, BKPM remained adamant that fiscal policy. As a result tug holiday tax policy would long tails.

BKPM is not alone in fighting for the implementation of the tax holiday. Because of this institution behind the Chamber of Commerce is requesting the application of a tax holiday for the output of the direct investment was no less competitive with imported products.

In addition, there is also the Ministry of Industry, promote the industry stakeholders in Indonesia through new investments in the manufacturing industry. As Head of BKPM Gita Wirjawan, the support side of the chamber pressure was due to the considerations underlying the strategic interests of investors bring.

Therefore, if you want to achieve great goals in investment, there should be fiscal incentives support. In the chamber's view, very important fiscal incentives to stimulate investment in eastern Indonesia.

In fact, the tug of this tax policy issue stems from the government's plans to develop Special Economic Zones (KEK), particularly in the Merauke, Papua. Merauke The plan will be developed into food estate in an area of 1.5 million hectares.

To realize that ambition, clearly needed the business world role. Well, to stimulate business, governments through a number of ministers and the head of BKPM promised to give tax holiday.

But nothing, sweet promise that directly countered the Ministry of Finance. The reason, tax policy is not holiday in the dictionary and taxation policies in Indonesia. But contained in the national taxation system is a fiscal incentive. The problem, the definition of this fiscal incentives alone until now are still vague. Defection with the same investment climate in Indonesia. Because look at some cases fiscal incentives that had been done by the government, was in it, there is in fact the policy was a tax holiday.

Indeed, tax holiday, tax reduction, and tax amnesty does not mean absolute tax exemption. The recipient's facilities are not tax-free pitch without taxable watercress.

The reason, various kinds of tax breaks that are usually given in the form of delayed payments or tax payments in stages. Exemption of tax liability that was given in a certain time frame.

Facilities tax holiday and tax reduction has been such a given. Some of them are still valid. In the case of Integrated Economic Development Zone (KAPET) developed since 1996, the government has several times given tax exemption facility.

Then, in the tax laws ever enacted in 2000, the government still provides various facilities tax and import duties to stimulate investment in KAPET. Unfortunately, his own KAPET trigger wilting before it develops.

Facilities taxation applicable in the environment that KAPET among others in the form, reduction of net income 30% of the total investment, depreciation and implement options or amortization, as well as the imposition of Article 26 of Income Tax on dividends by 10%. Three fasilias tax included in the category of tax reductions or tax reduction.

There's more, the government also provides facilities classified as tax holiday. Among other things, exemption of VAT / PPnBM imports of capital goods or equipment for the development / construction / expansion of Bonded Zones. This tax-free facilities provided to investors who developed the Bonded Zones in KAPET.

As for industrial building entrepreneurs in the Bonded Zones in KAPET also get exemption of VAT / PPnBM to imports of capital goods and other equipment associated with the production process. Imports of raw materials and auxiliary materials to be processed in the Bonded Zones in KAPET also free of VAT / PPnBM.

Well, if that turns out to KAPET developed wilting before the government can give tax holiday and tax reduction, why the government is now not willing to provide similar facilities? After all, the essence is the same policy. Once tax holiday does not exist in Indonesian tax books.

So even if the government is now willing to provide facilities and tax exemption tax reduction, then the facilities were not the only guarantee investors want to go. There are many other problems that interfere with the investment climate must be cleared completely. Tax holiday was just an additional sweetener alone.