Govt to expand tax holiday provision

JAKARTA. The government is mulling the expansion of  tax holiday provisions for old firms as part of its efforts to relax a rule on tax incentives.

Under a 2011 Finance Minister regulation on tax holidays, to be eligible old firms — established in 2010 at the latest — should form a new subsidiary or joint venture with other firms to access the facility .

Industry Minister MS Hidayat said Tuesday that the change might be included in the planned revision of the Finance Minister regulation.

 “We will argue that the change is necessary to attract more firms to apply for the facility,” he said.

Earlier, the government said it may lower the minimum investment threshold that benefits from the facility to Rp 500 billion (US$42.5 million) from Rp 1 trillion. (The Jakarta Post)