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Jokowi Pledges to Cut UMKM Tax Rate
Saturday, 26 November, 2016 | 08:30 WIB
Jokowi Pledges to Cut UMKM Tax Rate

TEMPO.CO, Jakarta - President Joko ‘Jokowi’ Widodo promised to cut tax rate to small and medium enterprises (UMKM/SMEs) from 1 percent to 0.25 percent.

Such a statement was revealed by Cooperatives and SME Minister AAGN Puspayoga after accompanying 31 SME entrepreneurs to meet President Jokowi in Merdeka Palace, Jakarta (25/11).

Puspayoga said that President Jokowi’s intention to lower SME taxes was a response to the demands of UKM enterpreneurs who consider 1 percent tax rate too high for them and making it difficult to do their business.

"President has agrred and made immediate follow up. The regulation is hoped to be changed by next week so that the final tax rate is no longer 1 persent for SMEs," he added.

In addition, President Jokowi is set to lower redemption tariffs in Tax Amnesty program for SME taxpayers.



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