Jakarta, July 8, 2008 - The Ad Hoc Committee for Deliberating Income Tax Bill has agreed to double the limit of daily labor wage exempted from tax to Rp 110,000 from Rp 50,000 – Rp 60,000, Media Indonesia Daily reported on Tuesday.
“The wage is counted for 25 working days every month so that the tax is not imposed unless the working period is only one week,” said Olly Dondokambey, a member of the Committee from the Indonesia Democratic Party of Struggle Faction.
Therefore, if the daily labor wage is above Rp 110,000 on the average, supervisor would directly cut wage of the labor to pay income tax, he said, adding the purchasing power of daily labor must be protected because they have not been certain to obtain work every month.
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