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Tax holiday offered in Q3 this year.

TAX HOLIDAY OFFERED IN Q3 THIS YEAR. The capital investment coordinating board (BKPM) said the plan to offer tax holiday to attract investors is expected to be effective in the third quarter of this year. The incentive proposal has been submitted to the finance ministry for approval, BPKM chief Gita Wirjawan said. There is still disagreement between BKPM and the finance ministry over the length of time the incentive should be effective, Gita said, adding agreement has yet to be reached on that matter. BKPM wants the tax holiday regulation effective for 5-10 years, he said giving no time proposed by the ministry. The government has offered a number of other incentives including tax allowance to encourage investors. The government hopes that the incentives will help boost development of manufacturing industry by 5.2%-6% next year. A total investment of around Rp 124.6 trillion will be needed for the manufacturing industry to reach the growth target Incentives will be offered mainly on investment in priority industries including labor intensive industries, natural resources based industries and other industries contributing to accelerating economic growth
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Title Annotation:ECONOMIC NEWS IN BRIEF
Publication:Indonesian Commercial Newsletter
Date:Dec 1, 2010
Words:184
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