Disputes over tax settled

Disputes over tax settled

JAKARTA (JP): Labor disputes between workers and management in
two garment companies in Cimanggis, Bogor, over confusion on the
deduction of income taxes from the workers' salaries, have been
settled under government mediation.

Director for labor standards from the Manpower Ministry, Tjepy
F. Aloewie, told reporters on Monday that the situation in the
two factories has returned to normal and the approximately 7,000
workers, who went on strike last week, have returned to work.

He said the disputes were settled after a joint team of the
Ministry of Manpower and the Ministry of Finance went to the
factories to check the issue and give an explanation on income
tax payments to the workers.

He said the workers went on strike because they feared that
management would deduct the income tax from their monthly
salaries.

The workers decided to return to work after they learned that
the tax plan applies only to workers whose salaries reach the
minimum taxable income of Rp 2.4 million per year for an
unmarried worker and Rp 2.8 million per year for a married
worker, without children. (rms)