"Of the tax incentives amounting to Rp120.6 trillion that we have provided to date, below Rp30 trillion, or 24.6 percent, had been realized," the minister noted at the Spectaxcular event in Jakarta, Friday.
Indrawati attributed the realization to tax incentives for employees, specifically Income Tax Article 21 (PPh Article 21) borne by the government, amounting to Rp2.18 trillion.
Furthermore, the PPh 22 import exemption was successfully realized at up to Rp7.3 trillion, the discount of income tax (PPh) article 25 realized at Rp10.2 trillion, and acceleration of Value Added Tax (VAT) restitution was enforced.
Although absorption was still low, the minister ensures that her side will remain consistent in offering tax incentives to the public and the business world to help them overcome the impact of the COVID-19 pandemic.
"We will continue to struggle to convey to all taxpayers (WP) that the government is here to help them," she remarked.
Hence, the minister pointed out that it was a challenge for the ranks of the Directorate General of Taxes (DGT) to offer massive incentives in the midst of depressed tax revenues.
Indrawati opined that this was necessary since tax revenue had contracted by over 17 percent, while spending had continued to rise, so the deficit had increased to 6.34 percent, or over Rp1,000 trillion.
Furthermore, the minister urged the ranks of the Directorate General of Taxes to continue to fulfill their tasks of tax revenue collection from taxpayers and offer various incentives to ensure survival and recovery of taxpayers.
"It is a challenge that is not easy for us all. Hence, I consider that today, we all have to continue to support each other," she added. Related news: President expects tax incentives to boost investment
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Translator: Astrid F, Azis Kurmala
Editor: Suharto
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