Indonesia boosts tax incentives

To limit Covid-19 impact

JAKARTA:

Indonesia has increased tax incentives for businesses in a move to try and limit the economic impact of the coronavirus pandemic, its tax office said on Saturday. Previously announced tax relief that was due to expire in September, has been extended until the end of the year, a statement said. It includes tax breaks for some manufacturing workers and small and medium-sized enterprises and a discount on corporate tax instalments. The government has also expanded the type of companies eligible to apply for the tax breaks, including, for example, forestry businesses in the scheme. It has allocated nearly $50 billion in state spending to fight the coronavirus pandemic. That and a projected drop in fiscal revenues are seen expanding its 2020 budget deficit by more than three times the government’s original plan, to 6.34% of gross domestic product.