Government bears import duties to help business world survive crisis

Government bears import duties to help business world survive crisis

Pelindo's Belawan Container Terminal Port 1. ANTARA / HO-Pelindo 1 / aa. (Pelindo Public Relations Handout 1)

Jakarta (ANTARA) - The government is bearing import duties on the imports of goods and materials to produce goods and/or offer services in industrial sectors reeling from the COVID-19 pandemic through issuance of Finance Ministerial Regulation Number 134/PMK.010/2020.

"The facility is valid at the time the finance minister’s regulation is promulgated until December 31, 2020," Head of the Fiscal Policy Agency of the Ministry of Finance Febrio Kacaribu stated in Jakarta on Wednesday.

The government's policy to bear import duties is part of the National Economic Recovery (PEN) Program to enable the business world to survive amid the pandemic crisis.

Government-borne import duty (BM DTP) is offered on the imports of goods and materials required domestically but not yet fulfilled by the industry, both in terms of quantity and specifications.

These goods and materials must be utilized for the production of goods consumed domestically, so they are not for exports.

Some 33 industrial sectors, including the health industry sector, specifically players involved in the production of Personal Protective Equipment (PPE), hand sanitizers, and disinfectants, are eligible for this facility.

The other industrial sectors pertaining to electronics, telecommunications, optical fibers, smart cards, and can packaging, having a high multiplier effect on the economy can also avail the facility.

Kacaribu explained that the BM DTP had added a series of tax incentives to maintain domestic industrial productivity, including reduction in the corporate income tax rate, exemption from Article 22 of the Income Tax, reduction in installments in Article 25 of the Income Tax, and preliminary VAT refunds.

"The government remains committed to continually providing tax incentives to assist businesses in dealing with the impact of the COVID-19 pandemic," he added. Related news: Government exempts import duties and import tax on goods for COVID-19
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