Plan For The Imposition Of Income Tax On Inheritance
The government is drafting the revision to Law Number 7 Year 1983 regarding Income Tax (PPh). In the revision, the government considers to impose income tax on inheritance.
According to the Head of the Fiscal Policy Agency, Suahasil Nazara, income tax on inheritance is a tax regime which may be used to encourage consumption. If inheritance is subject to tax, people will tend to spend thus making an impact on economic growth caused by the increase in household consumption.
At the moment, inheritance is not an income tax object but must be reported in a tax return. Therefore, the government will first ask the opinions of various parties because if people tend to spend their wealth, they cannot bequeath wealth to their heirs.