Jakarta, Mar 13 (ANTARA News) - A business leader here on Tuesday expressed belief that tax incentives to be offered by the government in April can boost investment in the country.
"We support the policy as tax incentives, which are currently being formulated for implementation next month, will help to attract investment here," Sofyan Wanandi noted after attending an event to acknowledge major tax payers.
The government is currently restructuring its tax incentives in the form of a tax holiday and tax allowance respectively for newly established companies in the country for a certain period and for investment based on its size.
Finance Minister Sri Mulyani explained that the amount of investment to be eligible for tax allowance will be reduced from Rp1 trillion to RP500 billion, while tax holiday will be offered in a single rate of 100 percent instead of within a certain range like before.
The revised regulation for tax allowance, which will be in the form of a government regulation (PP), is currently still being discussed to determine business groups that are eligible for a tax allowance, she revealed.
"It is said that a tax holiday and tax allowance will be offered with few conditions. It used to take very long to get them, so people were lazy to avail them. Now, the requirements will be less stringent, so I think many businesses would like to avail them, including old investment firms seeking to expand," she noted.
Other incentives to be offered by the government are a reduction in the final income tax of small and medium businesses and research and development tax incentive for companies holding vocational training programs. They will also be produced in the form of a PP, she remarked.