Sri Mulyani Ensures 18 Sectors Continue to Receive Fiscal Incentives in 2024

JAKARTA. Minister of Finance Sri Mulyani confirmed that she will continue to provide fiscal incentives to 18 industrial sectors in 2024. The number of recipients of these incentives is the same as this year.

Some of the incentives provided range from tax exemptions or tax holidays, tax reductions or tax allowances and several other incentives.

The industrial sectors in question include the digital sector, downstream, pioneer industry, construction, housing and the electric vehicle industry.

Sri Mulyani assessed that the 18 sectors still need incentives to keep growing. For instance, in the housing construction sector, the government has issued regulations providing government-borne Value Added Tax (VAT) facilities.

This policy is effective from November 2023 to December 2024. The aim is to stimulate growth in the construction sector, which is expected to have a knock-on effect.

Read: Minister of Finance Hands Over Tax Holiday Granting Authority to BKPM

As for the tax holiday, so far the government has implemented three schemes. First, the general tax holiday scheme regulated in Minister of Finance Regulation (PMK) Number 130 of 2020.

The policy stipulated in this regulation includes the provision of 100% tax exemption and 50% tax exemption.

Second, tax holiday facilities provided in the context of developing the Nusantara Capital City (IKN), as stipulated in Government Regulation (PP) Number 12 of 2023.

The third, tax holidays granted in Special Economic Zones as stipulated in PMK Number 237 of 2020. (ASP/KEN)