Govt prepares fiscal stimuli to reduce coronavirus impact on economy

Insya Allah (God willing) Mrs Finance Minister (Sri Mulyani Indrawati) will announce the second round of fiscal stimuli in details

Jakarta (ANTARA) - The Indonesian government has prepared the second round of fiscal stimuli to reduce the impact of the coronavirus outbreak on the Indonesian economy, Bank Indonesia (BI) Governor Perry Warjiyo said.

"God willing, Mrs Finance Minister (Sri Mulyani Indrawati) will announce the second round of fiscal stimuli in details," Warjiyo said here on Wednesday.

The second round of fiscal stimuli includes four procedural aspects and four fiscal incentives.

The procedural aspects include streamlining export regulations or procedures, reducing restrictions or procedures, particularly on the import of raw materials, expediting the import process for 500 importers and making efficient use of logistics systems.

The fiscal incentives include scrapping the income tax on corporate bodies, micro and medium scale businesses, relaxing import duties, lowering income tax tariffs and providing tax subsidies.

Warjiyo said the government issued the stimuli to boost domestic consumption and production activities, which come under pressure due to various upheavals, including the coronavirus outbreak.

"(With the suspension of income tax) employees who have, so far, paid income tax under article 21 will have sufficient salaries. The suspension of income tax under article 21 and other obligations is also granted to micro and medium businesses," he said.

Finance Minister Sri Mulyani Indrawati said on Tuesday (Feb 10) that the government had prepared a wide range of stimuli, including the suspended withholding of income taxes under articles 21, 22 and 25.

The government also plans to raise the maximum limit of expedited tax refunds from Rp1 billion to Rp5 billion.

Source: ANTARA News

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