ID :
44549
Fri, 02/06/2009 - 20:51
Auther :
Shortlink :
https://www.oananews.org//node/44549
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GOVT TO MAINTAIN INCOME TAX CUTS AS ECONOMIC STIMULUS
Jakarta, Feb 6 (ANTARA) - The Finance Ministry maintains that income tax cuts will remain to serve as a fiscal stimulus for the national economy in 2009, a ministry official said.
"Fiscal stimuli in any country are tax cuts and spendings," Chief of the Fiscal Policy Affairs of the Ministry of Finance, Anggito Abimanyu said here on Friday.
Previously, legislators of the House of Representatives (DPR)'s Commission XI, which deals with financial affairs, asked the government to provide the fiscal stimuli in the form of fresh cash from the state budget.
They asked that the income tax (PPh) cuts and non-taxable income (PTKP) incentives which caused a decline by Rp43 trillion in state revenues, should not be provided as fiscal stimuli in 2009.
"We will take heed of the legislators' wish which asked that the government increase its spendings. But it has the consequence, namely additional deficit or additional financing. We have not yet considered this. Maybe we will tell the House's Budgetary Commission about this in time," Abimanyu said.
But, he said, the government maintained its policy that tax cuts would be a fiscal stimulus instrument for national economy because it would save the people's tax spending.
"They are actually companies' tax payers' taxes. There are companies which have a large number of employees. They can save costs from not paying their taxes which will increase their profits," the finance ministry official said.
He said that the tax cuts for fiscal stimuli which reached Rp43 trillion were a new thing for Indonesia which had never been carried out and would be implemented in 2009.
On the occasion, Abimanyu also responded to the opinion which feared that the tax cuts would be allocated for saving only so that their stimulation effect would not be too effective. He said that the targets of the stimuli were the people of the middle and lower income brackets.
"The people of the middle and lower income brackets if they get money will spend it for their necessities so that it would be effective as stimulant, while the people of upper income groups will possibly save it," he said.
"Fiscal stimuli in any country are tax cuts and spendings," Chief of the Fiscal Policy Affairs of the Ministry of Finance, Anggito Abimanyu said here on Friday.
Previously, legislators of the House of Representatives (DPR)'s Commission XI, which deals with financial affairs, asked the government to provide the fiscal stimuli in the form of fresh cash from the state budget.
They asked that the income tax (PPh) cuts and non-taxable income (PTKP) incentives which caused a decline by Rp43 trillion in state revenues, should not be provided as fiscal stimuli in 2009.
"We will take heed of the legislators' wish which asked that the government increase its spendings. But it has the consequence, namely additional deficit or additional financing. We have not yet considered this. Maybe we will tell the House's Budgetary Commission about this in time," Abimanyu said.
But, he said, the government maintained its policy that tax cuts would be a fiscal stimulus instrument for national economy because it would save the people's tax spending.
"They are actually companies' tax payers' taxes. There are companies which have a large number of employees. They can save costs from not paying their taxes which will increase their profits," the finance ministry official said.
He said that the tax cuts for fiscal stimuli which reached Rp43 trillion were a new thing for Indonesia which had never been carried out and would be implemented in 2009.
On the occasion, Abimanyu also responded to the opinion which feared that the tax cuts would be allocated for saving only so that their stimulation effect would not be too effective. He said that the targets of the stimuli were the people of the middle and lower income brackets.
"The people of the middle and lower income brackets if they get money will spend it for their necessities so that it would be effective as stimulant, while the people of upper income groups will possibly save it," he said.
