VIVAnews - The government is probing into the possibility of granting tax holiday to the industrial development in Indonesia’s eastern area.
Minister of the Economy, Hatta Rajasa said he had not made any decision on the matter.
“It needs to be analyzed. We haven’t said yes or no. But the impacts on the economy need to be deeply analyzed,” Rajasa said after opening the Industry Ministry meeting in Jakarta on Wednesday, February 17.
The idea to give tax holiday to the industrial development in eastern Indonesia was suggested by the Industry Ministry. However, a rejection came from the Directorate General of Taxes.
Industry Minister MS Hidayat said tax holiday is commonly used by countries wishing to open themselves to investments.
“If the government wants investments to be made in certain regions, tax holiday is required,” he said.
According to him, the rejection from the taxation sector is really normal because there are priorities when it comes to tax revenues.
If the government decides to give out the tax holiday, taxation regulations must be revised because tax holiday is not included in the policy.
“If it’s not regulated, change the rules. It’s the strategy to keep the country from losses and maintain economic growth in the regions,” he said.
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Translated by: Nataya Ermanti
