Chief Economic Minister Denies Tax Holiday Plan
Monday, 14 June, 2010 | 17:39 WIB

TEMPO Interactive, Jakarta: Coordinating Minister for the Economy Hatta Radjasa expressed his disapproval for tax holiday for foreign investment in another counter for the proposed measure by the Industry Department, and informed that the government will prepare another measure.

Speaking at his office on today (14/6) Hatta said “Tax holiday could not be applied just like that.” He said the government will prepare a team to assess the fiscal incentive requests, which he said could come in form of tax holiday or other policies.

He said fiscal incentive will be given based on the size of certain investment and its impact to employment, “So we are not applying tax holiday for all investment.”

Last week Industry Minister MS Hidayat claimed the Finance Department has approved the measure and will draw detailed draft for the policy with the Investment Coordinating Board.

The response from the Coordinating Ministry for the Economy today reminded the reaction from the Finance Department last April to a similar claim from MS Hidayat, in which the Finance Department said there was no agreement for tax holiday.


FEBRIYAN