TEMPO.CO, Jakarta - The government is set to increase the annual nontaxable income (PTKP) limit to Rp54 million, increasing by 50 percent when compared to the previous one set at Rp36 million per year.
Coordinating Economic Minister Darmin Nasution said that readjusting the threshold would enable people to have a better purchasing power. Increasing the threshold would lift the burden of paying taxes and redistribute their income to other spendings.
“The amount of tax imposed on them would be even smaller,” Darmin said on Friday, July 21.
Darmin revealed that the decision to adjust the PTKP threshold had gone through a large number of considerations, such as changing times, minimum wage limit, and general living expenses.
Darmin revealed that the PTKP threshold readjustment has been discussed at the Finance Ministry, but not yet at the Coordinating Ministry.
The last time the Finance Ministry elevated the PTKP threshold was in 2015.