Tax Incentives Increased in Indonesia to Curb the Pandemic

Indonesia has increased tax incentives for businesses in a move to try and limit the economic impact of the coronavirus pandemic, its tax office said on Saturday.

Previously announced tax relief measures that were due to expire in September have been extended until the end of the year, a statement said. They include tax breaks for some manufacturing workers and small and medium-sized enterprises, and a discount on corporate tax installments.

The government has also expanded the type of companies eligible to apply for the tax breaks, including, for example, forestry businesses in the scheme.

It has allocated nearly 50 billion U.S. dollars in state spending to fight the coronavirus pandemic. That, and a projected drop in fiscal revenues, are seen as expanding the 2020 budget deficit by more than three times the government’s original plan, to 6.34 percent of gross domestic product.

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