Jakarta (ANTARA) - The government has extended the provision of tax incentives for goods and equipment needed to handle the COVID-19 pandemic and income tax (PPh) exemption for health workers till the end of June 2022.

"The incentive extension has been given since the government understands that the COVID-19 pandemic has not ended," director of counseling, services, and public relations at the Directorate General of Taxes of the Ministry of Finance, Neilmaldrin Noor, said in Jakarta on Wednesday.

The government is providing two types of incentives: a value-added tax (PPN), which is borne by the government (DTP), and an exemption on PPh, he informed.

PPN DTP incentives are being provided to three parties involved in pandemic handling. First, government agencies, agencies, hospitals, and parties that contribute taxable goods (BKP) for pandemic handling, he explained.

The goods include medicines, vaccines, and vaccination equipment, laboratory equipment, detection equipment, personal protective equipment, and patient care equipment, he said.

Second, the pharmaceutical industry, which produces vaccines and/or medicines, is getting incentives for the acquisition of raw materials for vaccines and/or medicine for COVID-19 handling, he added.

Third, incentives are being provided to taxpayers (WP) who obtain vaccines and/or medicines for COVID-19 handling from the pharmaceutical industry producing vaccines and/or medicines, he said.

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Furthermore, PPh is also being extended to three parties. First, government agencies, agencies, hospitals, and those donating goods for pandemic handling, he added.

The goods include medicines, vaccines and vaccination support equipment, laboratory equipment, detection equipment, personal protective equipment, and patient care equipment, he said.

Second, the pharmaceutical industry producing vaccines and/or medicines through the purchase of raw materials for vaccines and/or medicines for COVID-19 handling, he added.

Third, those collaborating with government agencies/agencies, hospitals, and other parties for handling the pandemic and those selling goods to certain parties.

"The PPN and PPh incentives provided by the government also cover imports, acquisitions, and purchases of booster vaccines for all Indonesians," Noor said.

In addition, the government has also extended incentives in the form of zero percent final PPh for additional income received by human resources in the health sector, he disclosed.

Human resources in the health sector include health workers, namely doctors and nurses, as well as health support personnel, such as cleaners, ambulance drivers, and corpse caretaker personnel, he said.

Those who provide health services for COVID-19 handling and receive honorariums or other benefits can receive the additional income in full because they are subject to zero percent income tax, he explained.

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Translator: Astrid F H, Resinta S
Editor: Suharto
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