Finance Minister Sri Mulyani Indrawati said the accelerated Value Added Tax (VAT) restitution policy was provided to help companies’ liquidity during the pandemic. According to her, many taxable businesses (PKP) have found it easy due to the accelerated VAT restitution provision.
She said the increase helped many entrepreneurs accelerate the VAT restitution cap from Rp 1 billion to Rp 5 billion. The government will continue improving taxation policies and business processes to support production activities.
“We will continue to improve so that it will add to the company’s cash flow improvement,” Sri Mulyani said after meeting with entrepreneurs in Cikarang, West Java, last weekend.
The VAT restitution limit increase to Rp 5 billion is only given to PKPs that meet certain requirements. Although not examined at the beginning, taxpayers who get accelerated VAT restitution also have the potential to be examined later.