The government exempts the Value Added Tax (VAT) for renting shops or outlets in shopping centers or malls during the June-August 2021 tax period.
The exemption is an incentive given by the government to business actors in line with the extension of the Community Activity Restrictions (PPKM) period.
However, the Indonesian Retail Entrepreneurs Association (Aprindo) views that the provision of incentives is not able to compensate for the losses currently being experienced by retailers.
Aprindo also hopes that the incentives can be expanded because modern retailers in malls only account for 20% of the total retail in Indonesia, while the remaining 80% are outside malls. In fact, the majority of retail stores that do not exist outside the mall do not rent stores, but are owned by the company itself or are franchised.
Photo Reporter: Baihaki
Editor: Daniel Prabowo
– .
