{
    "success": true,
    "data": {
        "id": 1526587,
        "msgid": "aico-tax-breaks-ineffective-1447893297",
        "date": "1997-03-14 00:00:00",
        "title": "AICO tax breaks ineffective",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "AICO tax breaks ineffective JAKARTA (JP): The chairman of the ASEAN Chambers of Commerce and Industry, Aburizal Bakrie, said yesterday tax breaks given under the ASEAN Industrial Cooperation (AICO) scheme were ineffective because only a few countries could get the benefits. \"ASEAN governments are asking the private sector to have a bigger role in the region's economy but they are not providing effective guidelines for us to do this,\" Aburizal said at the end of the First ASEAN Business Summit.",
        "content": "<p>AICO tax breaks ineffective<\/p>\n<p>JAKARTA (JP): The chairman of the ASEAN Chambers of Commerce<br>\nand Industry, Aburizal Bakrie, said yesterday tax breaks given<br>\nunder the ASEAN Industrial Cooperation (AICO) scheme were<br>\nineffective because only a few countries could get the benefits.<\/p>\n<p>&quot;ASEAN governments are asking the private sector to have a<br>\nbigger role in the region&apos;s economy but they are not providing<br>\neffective guidelines for us to do this,&quot; Aburizal said at the end<br>\nof the First ASEAN Business Summit.<\/p>\n<p>AICO aimed to promote joint industrial manufacturing<br>\nactivities between ASEAN companies. A minimum of two companies<br>\nfrom different ASEAN countries are needed to form an AICO<br>\narrangement.<\/p>\n<p>The arrangement provides an umbrella association for the<br>\ncompanies and gives their products a preferential tariff rate of<br>\nbetween zero percent and 5 percent.<\/p>\n<p>The preferential tariff rate also applies to imported<br>\nintermediate products and raw material used in manufacturing.<\/p>\n<p>The scheme covers all products except those exempted from the<br>\ncommon effective preferential tariff scheme.<\/p>\n<p>Aburizal said ASEAN governments should be more serious in<br>\nestablishing policies if they wanted businesses play a bigger<br>\nrole in intra-ASEAN trade.<\/p>\n<p>He said no AICO scheme had been approved so far even though<br>\nAICO was founded in the early 1990&apos;s.<\/p>\n<p>Meanwhile, ASEAN Secretary-General Ajit Singh said it would be<br>\nironic if foreign businesses seized the initiative and derived<br>\ngreater advantages from the ASEAN Free Trade Area and AICO rather<br>\nthan ASEAN businesspeople.<\/p>\n<p>&quot;As it is now, many non-ASEAN businesspeople, especially the<br>\nJapanese, are busy preparing applications for AICO approvals,&quot; he<br>\nsaid.<\/p>\n<p>In order to form an AICO arrangement, companies must be<br>\nincorporated, operate in ASEAN, have a minimum 30-percent<br>\nnational equity and undertake resource-sharing, pooling or<br>\nindustrial complementation activities. (pwn\/rid)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/aico-tax-breaks-ineffective-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}