PPP projects may get tax incentives
The Jakarta Post, Jakarta - 17/01/2011
Many infrastructure projects run by the government and private companies under the public-private partnership (PPP) scheme are likely to receive fiscal incentives, the National Development Planning Agency (Bappenas) said.
“The incentives are designed to attract investors because they influences production costs,” Bappenas deputy chief for infrastructure affairs Dedy S. Priatna Dedy was quoted as saying Friday by news portal kontan.co.id.
However, Dedy said, the tax incentive would be granted to sectors or projects with high risks or less investments. He cited a power plant construction project in Central Java to be built this year as an example.
A government regulation on the calculation of income tax (PPh) and income tax redemption issued last year enables the Finance Ministry to offer investors tax breaks.