Govt to have fiscal incentive package ready by August

The fiscal incentive package will be the revision of Government Regulation Number 62 of 2008 on Tax Allowance.
Jakarta (ANTARA News) - The Indonesian government will make its fiscal incentive package for industries ready by August this year, Head of the Investment Coordinating Board (BKPM), Gita Wiryawan, said here on Monday.

The fiscal incentive package will be the revision of Government Regulation Number 62 of 2008 on Tax Allowance.

"The spirit (of the program) is coverage of incentive recipients will be widened," he said to newsmen on the sidelines of the World Economic Forum on East Asia.

He said the package was aimed at increasing investment in the country. "So it is like the perception so far that the incentive package only benefits foreign parties and neglect local interests," he said.

He said the essence is that incentives would remain to be given as long as the commitment of would-be investors matched with the government`s vision such as increasing employment, prioritizing national development and others.

"And so do with the evaluation and extension of tax holiday," he said.

Finance Minister Agus Martowardoyo earlier confirmed that he would issue the finance minister`s regulation on tax holiday in June 2011.

Based on the regulation all big industries across Indonesia would be given a tax holiday and not only pioneering industries or labor-intensive industries or industries in the eastern region as perceived before.

The minister said the names of the companies receiving the tax holiday would not be mentioned because all of them would get it.

Acting Head of the Finance Ministry`s Fiscal Policy, Bambang Brodjonegoro, also said that the regulation would be completed this month and the incentive would be given to all big industries.

Sectoral industries in priority regions would also get an incentive which would be put in a separate regulation, he said.

"In essence there will be no priority. All big industries will get a tax holiday," he said.(*)

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