Executive director of the Institute for Development of Economics and Finance (INDEF) Enny Sri Hartati stated that a tax holiday should be calculated to be given to sectors which give value added. She explained that the calculation is needed because tax exemption allows the loss of potential tax revenue when investment starts, Enny said here on Tuesday.
If the tax holiday has been calculated carefully, the government should be consistent. The regulation should be clear and comprehensive to provide certainty for the business world.
Director general of taxation Robert Pakpahan said that the government would make a new regulation on a tax holiday to simplify the procedure. Based on the new regulation, old investors will obtain a tax holiday if they expand their businesses.
Under the old regulation, the range of a tax holiday has been between 10 to 100 percent, but under the new regulation it will be 100 percent.
The Ministry of Finance has also expanded the scope of the pioneer industry to 17 industrial sectors provided with a tax holiday.