Government-borne Income Tax Counterproductive
VIVAnews - Economic analyst Faisal Basri considered that tax stimulation taking the form of government-borne income tax will be counter-productive. The incentives will not directly affect companies.
"For instance, income tax of article 25 on annual profit payment. It means that companies can still gain profits and are not necessarily subsidized," he said on Wednesday, Jan 21.
Meanwhile, as for income tax of article 21, Basri viewed that not all industries pay taxes for the employees. "Therefore, it will not influence the companies' finance," he said.
Basri said that the government should directly boost purchasing power and assist industries with more substantial policies. "The electronic industry once stressed that they would like smuggled imported products to be wiped out," he said.
In addition, incentives or stimulation fund, according to Basri, should be granted to small- and medium-sized enterprises.
The government must find the perfect moment to present the stimulation fund. "Peak harvest season, for instance. Incentives for infrastructure should be granted then. If the harvesting season is over, then delay the infrastructure incentives and support the farmers," he said.
Basri claimed that the government may allocate subsidies or direct aid. "However, it must be balanced with subsidies to expenditures which add to capital stock such as infrastructures or micro-, small- and medium-sized enterprises," said Basri.
Translated by: Bonardo Maulana Wahono
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