PPKM Extended; Govt Scraps VAT for Shopping Mall Stores

Translator

Dewi Elvia Muthiariny

Editor

Petir Garda Bhwana

Senin, 26 Juli 2021 07:54 WIB

A person washes his hands in the Hotel Indonesia roundabout area, Jakarta, Sunday, July 27, 2021. President Joko Widodo has decided to extend the implementation of Community Activity Restrictions (PPKM) in a number of areas on the islands of Java and Bali until next August 2. ANTARA PHOTOS/M Risyal Hidaya

TEMPO.CO, Jakarta - The government pledged to grant new incentives as it decided to extend the emergency state of public mobility restrictions or PPKM Level 4. One of them is the exemption of Value-Added Tax (VAT) for renting shop spaces in shopping centers from June to August 2021.

Tenants would no longer have to pay the tax for their rent as it would be subsidized by the government.

“This PMK (Finance Ministerial Regulation) is in process,” said the Covid-19 Handling Committee Chairman Airlangga Hartarto at a press conference on Sunday, July 25.

Additionally, Airlangga promised similar incentives for other sectors, such as tourism and transportation. However, he stopped short of explaining the details. “It is being finalized,” he added.

The government had enforced the Emergency PPKM from July 3 to July 20. The policy was changed to PPKM Level 4 on July 21 to 25.

On Sunday, July 25, President Jokowi announced that the government decided to extend the PPKM Level 4 until August 2, 2021. However, several restrictions were relaxed.

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