Finance Minister to Review Tax Holiday
29 July 2014 16:20 WIB
TEMPO.CO, Jakarta - Finance Minister Chatib Basri said he will review the rules on tax holidays, citing there are many companies that are not interested in the facility.
"To date, there are only three companies, perhaps because it is a more complicated compared to tax allowance," he told reporters Monday, July 28, 2014.
Tax holiday is considered more complex because it must go through lengthier procedure. Chatib said the facility must first be supported by the Ministry of Finance and Ministry of Industry.
After the Industry Ministry, it needs to be verified by the Fiscal Policy Office's verification committee, the Finance Ministry, and then by it has to be consulted with the president. If the President approves, the file will be returned to the Ministry of Finance.
Meanwhile, tax allowance is considered more attractive to companies.
The procedure is relatively simple and short; having to be screened by the BKPM only before being verified by the Tax Directorate General. To date, a total of 78l companies have benefitted from tax allowances.
"That's why we are reviewing it; so it can be optimized," he said.
DEWI SUCI RAHAYU