JAKARTA. As of February 2021, PT Total Bangun Persada Tbk has won contracts amounting to IDR26 billion, or 1.3% of this year's new contract target of IDR2 trillion.
Total Bangun Persada Corporate Secretary Mahmilan Sugiyo Warsana said the acquisition of new contracts worth IDR 26 billion for the first two months this year came from a hotel construction project.
Although the acquisition of the contract is still far from the target, Mahmilan is optimistic that the construction industry will resume its activities in 2021 following the positive developments in the vaccination program. What is more is the government's plan to cut the final income tax (PPh) of the construction sector.
According to Mahmilan, the incentive will increase the cash flow of the contracting company during the economic recovery period. "Every time there is a reduction in tax rates, it becomes a business business stimulus," Mahmilan said as quoted by Bisnis.com this week.
The government plans to reduce the final income tax (PPh) rate for construction services through the Draft Government Regulation (RPP) regarding the Second Amendment to PP No. 51 of 2008 concerning Income Taxes from Construction Service Business Income. (AM/LM)