April, 22, 2010

Industry Department said the investment coordinating board have won permission from the Finance department to impose tax holiday in a bid to boost economic growth.Industry Minister MS Hidayat said on Thursday (22/4) at a textile exhibition in Jakarta said Head of the Investment Coordinator Board Gita Wiryawan “had succeeded in making agreement with the Finance Minister.”

But Hidayat said talks on tax holiday between Finance Minister Sri Mulyani and Gita Wiryawan has yet to find common ground on several points which include terminology for the policy.Hidayat said he prefered “government paid income tax” to “tax holiday” demanded by the investment board. The length of the policy is also another point to be determined which Hidayat said would be set for around ten years.

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