This study aims to analyze the achievement of policy objectives in terms of effectiveness, similarity and accuracy of income tax incentives in the form of tax allowances for the Indonesian fish processing industry. This research was conducted with a qualitative approach and qualitative data collection techniques through literature study and field study. The results show that although the tax allowance facility procedure has met the principle of simplicity, the facility has not effectively increased investment because it is still a relatively small industry that uses it. The fiscal cost burden still incurred by the taxpayer that makes this policy inefficient. This facility is also not appropriate for the fish processing industry because the allowance can only be utilized by large-scale industries, while small- and medium- scale fish processing industries cannot utilize the tax allowance facility. © 2017 Institute of Social Development and Policy Research, Seoul National University.