Minister Proposes Non-Taxable Income At Rp56 Million

Jakarta (Antara Bali) - Finance Minister Bambang Brodjonegoro has proposed an increase in the non-taxable income (PTKP) from Rp36 million to Rp56 million per annum to be effective beginning this year.

"We are proposing to raise the annual PTKP from Rp36 million to Rp56 million for unmarried workers," the finance minister noted on Wednesday.

Bambang stated that the PTKP rate for married taxpayers will be adjusted to the number of their children.    
The plan to raise the PTKP, which is expected to increase the people's consumption, will be consulted and reported in the first place to the House of Representatives (DPR).

Although the regulation on the plan to raise the PTKP will officially be enacted in June 2016, yet it is expected to be implemented retroactively from January 2016.

Bambang noted that the plan to increase the PTKP from Rp3 million to Rp4.5 million per month can contribute 0.16 percent to the country's overall economic growth.

"The DPR lauds the plan as it would have a positive macro impact and contribute to the growth in consumption and investment, including the gross domestic product (GDP), which we predict at 0.16 percent," the minister explained.

Bambang admitted that the increase in PTKP, aimed at maintaining the people's purchasing power, will slightly reduce the state's tax receipts, particularly income tax receipts. However, the government is also ready to step up efforts to uphold the law.

"We hope that the plan, if implemented, will contribute to the efforts to strengthening the people's purchasing power. State receipts will decrease, but it will be compensated with intensive efforts by the directorate general of taxation, including the tax auditing of individual taxpayers," the minister stressed. (WDY)