JSX requests for tax incentive<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The management of the Jakarta Stock Exchange (JSX) has asked the
\nDirectorate General of Taxation to provide tax incentives to
\npublicly-listed companies.<\/p>\n
The request was put forward during a meeting between the JSX
\nand tax officials late last week. It was not immediately clear
\nwhether the tax office would grant the demand.<\/p>\n
JSX director Harry Wiguna was quoted by detik.com as saying
\nthat the facility was expected to lure more companies to go
\npublic and list their shares on the exchange.<\/p>\n
Earlier last month, the JSX revised downward its performance
\ntarget for the year, citing unfavorable global economic
\nconditions, which had affected the local stock market. The bourse
\nmanagement, for example, cut the number of initial public
\nofferings (IPOs) this year by half to around 20. So far, only
\nthree companies have made IPOs and listed their shares on the
\nexchange.<\/p>\n
Harry said that providing tax incentives for listed companies
\nwas valid because listed companies had been more transparent than
\nnon-listed companies, which make the former less prone to evade
\ntheir taxes as they were being monitored by many parties
\nincluding the JSX, the capital market supervisory agency
\n(Bapepam), and also the public.<\/p>\n
"It will be difficult for them to manipulate taxes. Because
\nonce they get caught, the sanction is severe," he said.<\/p>\n
He added that although the government would loose tax revenue
\nby providing the facility, in the long-run as more companies went
\npublic the effect would be good for the overall economy.<\/p>\n
However, the JSX demand may be difficult to realize as the
\ngovernment is under pressure to raise greater tax revenues to
\nhelp finance the state budget amid plans to reduce the budget
\ndeficit to a much safer level and determination to lessen
\ndependence on foreign loans.<\/p>\n
Minister of Finance Boediono said earlier this month that the
\ngovernment would no longer provide tax facilities or other forms
\nof financial incentives for the business sector due to the
\nlimited budget capacity.<\/p>\n
Indeed, the tax office is determined to press ahead with a
\nplan to impose income tax on interest gains from mutual fund
\ninvestment, despite strong criticism from industry players.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-requests-for-tax-incentive-1447893297",
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