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These are the Government's Background and Objectives to Draft The Tax Provisions and Facilities Draft Bill

Jakarta, 06/09/2019 MoF - Currently, the government is working on a Taxation Provisions and Facilities Draft Bill for Strengthening the Economy.
 
The things that underlie the government to create the bill are the slowdown in the global economy, the Indonesian economy potential stagnation (middle income trap) and Indonesia's competitiveness that has not reached the optimum level yet.
 
Thus, the government made a separate set of laws (Omnibus Law - a bill that can merge two or more Laws, in this case there 3) and in parallel revised the General Provisions and Tax Procedures (KUP Law), the Income Tax Law (Income Tax Law), and the Value Added Tax Law (VAT Law), which combined all add up to 7 important points.
 
"The government's background and objectives are to create a draft bill that can merge 3 other laws so that it is called Omnibus law to address the challenges of a global economic slowdown, mitigate the potential for economic stagnation in Indonesia (middle income trap), and also to optimize investment competitiveness," he explained.
 
Whereas the objective of the drafting of this bill is to improve a conducive and attractive business climate for investors, improve Indonesia's economic growth, increase legal certainty and encourage the interest of Foreign Citizens (WNA) to work in Indonesia that can encourage the transfer of expertise and knowledge for the quality of Indonesian human resources, encourage voluntary compliance of taxpayers (WP) and create business justice between domestic business people and foreign business people. (nr/ds)