Covid-19 Stimulus Package Volume Three Is Prepared, Here Are 11 Targeted Sectors
Friday, 17 April 2020
JAKARTA. The government will expand fiscal incentives related to mitigating the impact of the Corona Virus Disease 2019 pandemic (Covid-19), by issuing tax stimulus package of volume 3 in the near term.
As is well known, previously the government has issued a tax stimulus package to address the impact of the Covid-19, through the Ministry of Finance Regulation (PMK) No. 23/PMK. 03/2020, which was published on 23 March 2020 and is effective from 1 April 2020 to 30 September 2020 (six months).
There are several types of tax incentives prepared by the Government, i.e. Income Tax Article (ITA) 21 borne by the government; exemption of ITA 22 on import, reduction of ITA 25, the acceleration of Value Added Tax (VAT) restitution and and reduction of corporate income tax rates.
The majority of these stimulus packages are intended for workers and employers engaged in the manufacturing industry with Certain Business Classifications (Klasifikasi Lapangan Usaha/KLU), as well as companies and Small and Medium Industries (SMEs/IKM) who obtain the Import Facility of for Export Purpose (KITE) facilities.
Read: Responding Corona, Tax Stimulus Package is Officially Valid
- Food such as livestock, fisheries, plantation and agriculture
- Free trade and retailing
- Electricity and renewable energy
- Oil and gas
- Mines and coal
- Forestry
- Tourism and creative Economy
- Telecommunications and Internet providers
- Logistic
- Land, air, river and crossing transportation
- Construction
In addition to determining 11 additional recipient industries, the government is currently also reviewing 635 Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia/KBLI) to complete the recipient industry requirements.
So, in addition to listing the types of industry, this stimulus package of volume 3 will also set a list of KBLI that are entitled to incentives.
