Minister Backs Tax Rule for SMEs

30 January, 2012 | Source: The Jakarta Post

Cooperatives and Small and Medium Enterprises Minister Syarifudin Hasan says he fully supports a plan to apply a 0.5 percent tax on all small and medium enterprises (SMEs) that have monthly revenues below Rp 300 million.

However, Syarifudin said that the government would have new policies to help SMEs develop when the tax came into effect.

“We will support them to grow bigger so that they can absorb more human resources,” he said Saturday, as quoted by tribunnews.com.

Syarifudin said that he understood some businessmen would see the tax policy as a burden, but advised them to conform to the rule.

“We have to stick to the law. Every citizen is obligated to pay taxes … and we will encourage businesses to grow bigger and stronger,” he said.

The new tax regulation for SMEs planned to impose a 2 percent annual income tax for businesses with revenues of between Rp 300 million and Rp 4.8 billion.

 

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