Apindo Urges Govt to Revive PPh 21 DTP to Save Textile Industry
Reporter
October 31, 2024 | 04:14 pm
TEMPO.CO, Jakarta - The Indonesian Employers' Association (Apindo) has urged the government to reinstate the tax incentive of the Income Tax Article 21 (PPh 21) borne by the government (DTP) to support struggling labor-intensive industries, particularly the textile sector, exemplified by the recent bankruptcy of PT Sri Rejeki Isman Tbk. (Sritex).
Anne Patricia Sutanto, Chair of Apindo's Trade Division, said that businesses hope the government will increase the Non-Taxable Income (PTKP) threshold or reintroduce the PPh 21 tax relief, similar to the measures implemented during the COVID-19 pandemic. “Because the industry is currently contracting,” she said at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday, October 30, 2024.
Anne said Apindo has already conveyed this proposal to Finance Minister Sri Mulyani Indrawati and Coordinating Minister for Economic Affairs Airlangga Hartarto. The association hopes that the government will consider this request, as it believes that the tax incentive can boost consumer purchasing power, particularly among workers.
Previously, the PPh 21 DTP incentive was implemented through Finance Ministerial Regulation (PMK) Number 9/PMK.03/2021, which provided tax relief to taxpayers affected by the COVID-19 pandemic. This regulation allowed for tax cuts on the income of employees of certain criteria and sectors.
Editor's Choice: Ministry of Industry Outlines Steps to Save Sritex
Click here to get the latest news updates from Tempo on Google News
