The government hoped that the reduction of the income tax rate would receive warm welcome from SMEs, he stated, after the commemoration of the 71st National Cooperatives Day at the Indonesia Convention Exhibition of Bumi Serpong Damai (ICE BSD) in Jakarta`s southwestern outskirts, on Thursday.
"Of course, all SMEs are happy (with it)," he added.
The government has slashed the annual income tax rate for SMEs from 1 percent to 0.5 percent.
The president noted that the reduction was quite significant.
"One percent is large. Of course, we are happy to have it halved to 0.5 percent," he noted.
With the reduction of the annual income tax rate, SMEs have a wider chance to expand their businesses, he remarked.
"The 0.5 percent reduction can be used to increase the capital to expand businesses. I think they will do so," he explained.
The policy to slash the annual income tax rate for SMEs is part of the government`s efforts to encourage them to expand their businesses.
The president elaborated that the cooperatives have been growing increasingly and contributing significantly to the national gross domestic product (GDP).
"Cooperatives` contribution to the GDP has also increased to 4.48 percent from 3.99 percent," he pointed out.
Reported by Hanni Sofia
EDITED BY INE
(T.S012/A/KR-BSR/S012)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
