The decision will be based on factory entrepreneurs' applications, who will also need to submit a guarantee to Customs for the 90-day delayJakarta (ANTARA) - The Ministry of Finance has decided to allow tobacco factory owners to delay paying taxes by a maximum of 90 days, as part of non-fiscal stimulus measures.
The decision has been made in response to a request by the Association of Tobacco Manufacturers seeking relaxations on tax payments, it said.
"This is to maintain the business sustainability and cash flow of the tobacco industry," the ministry explained in a statement released here on Saturday.
The policy has been stipulated in the Regulation of the Minister of Finance (PMK), Number 93/PMK.04/2021, concerning the Second Amendment to the Regulation of the Minister of Finance, Number 57/PMK.04/2017, it informed.
Under the regulation, businesses will be allowed to defer payments under different tax bands by up to 90 days from the due date prescribed by the current regulation, which was July 12, 2021. Therefore, delayed payments under different tax bands can be made until October 31, 2021.
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To avail the 90-day relaxation, factory operators will need to submit a decision letter (SKEP) seeking an extension on tax payment and update the proof of guarantee approval (BPJ), according to the ministry.
The head of the Customs office or the head of the Customs territory office will take decisions on granting the extension, the ministry said.
"The decision will be based on factory entrepreneurs' applications, who will also need to submit a guarantee to Customs for the 90-day delay," it added.
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The government had granted similar relaxations through the Regulation of the Minister of Finance Number 30/PMK.04/2020 concerning Amendments to Regulation of the Minister of Finance Number 57/PMK.04/2017, it pointed out.
The latest relaxation will be handled by Customs by upholding the principle of circumspection considering the total value of the delayed payments is Rp71 trillion, or 97 percent of CK-1, according to the ministry.
The value has been calculated based on delayed tax payments on 120 tobacco product factories, or 11 percent of tobacco products factories, between January 1 to May 31, 2021, it said.
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Translator: Astrid Habibah, Kenzu T
Editor: Fardah Assegaf
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