The Government Prepares a Series of Fiscal Stimulus
The government has confirmed it will release a fiscal stimulus to boost the economy this year, which is projected to experience a slowdown. The prepared policy instruments, from Income Tax (PPh), are delays in paying income tax for employees, Article 22 Income Tax for importers, and Article 25 Income Tax for business entities. The company can pay in installments for all types of PPh.
From the Value Added Tax (PPN), the government will raise the maximum limit of VAT refunds to taxable entrepreneurs (PKP) from the current maximum of Rp 1 billion to Rp 5 billion. Minister of Finance Sri Mulyani Indrawati stated this policy aims to help liquidity or cash flow of companies that are likely to be depressed by slowing distribution and consumption activities due to coronavirus outbreaks.