Batam's exit tax viewed negatively by business<\/p>\n
BATAM, Riau (JP): The imposition of exit tax on Indonesian
\npassport holders from Batam Island as of January 2002 could
\nbecome a disincentive for the business sector, a leading
\nentrepreneur has indicated.<\/p>\n
Abdullah Gosse, chairman of the Batam chapter of the
\nIndonesian Chamber of Commerce and Industry (Kadin), told The
\nJakarta Post earlier this week that the imposition of exit tax
\nwas not in line with Batam's designated status as a bonded and
\nfree trade zone.<\/p>\n
"The tax poses no problem for the stronger medium- and small-
\nscale businesses, but it will be quite a burden for the weaker
\nmedium- and small-scale businesses," he said, pointing out that
\nSingapore imposed no such tax on its citizens at the port of
\ndeparture.<\/p>\n
Anxiety has emerged in business circles after a recent
\nstatement by the head of the Batam tax office Djangkung
\nSudjarwadi that exit tax would be applied to those traveling
\nabroad, even if only to Singapore or Malaysia.<\/p>\n
The imposition of the tax is based on a government regulation
\nissued during the administration of president Abdurrahman Wahid.
\nPreviously, no departure tax was imposed on travelers to
\nSingapore, Malaysia and Thailand.<\/p>\n
For Indonesian passport holders from outside Batam, the tax
\nwill come into force on October 2001, while those from Batam will
\nbe required to show their tax file numbers (NPWP) in order to
\nobtain an exemption.<\/p>\n
According to Abdullah, this rule will still burden Batam
\nmedium-scale and weaker businesspeople because they go to
\nSingapore or Malaysia three times a week and mostly had no tax
\nfile numbers.<\/p>\n
Djangkung meanwhile explained that those whose tax had been
\nwithheld by employers or who had been registered as taxpayers
\nwere entitled to exemption from exit tax.<\/p>\n
He expressed his belief that the imposition of exit tax would
\nincrease locally generated revenue because 25 percent of the tax
\nreceipts derived from this source would go to the regional
\nadministration.<\/p>\n
Pura Jaya Hotel manager Zukriansyah in Batam responded to the
\nexit tax by describing the plan as being implemented too hastily
\nwithout prior discussion.<\/p>\n
"Our promotional programs in neighboring countries may have to
\nbe canceled as the cost of sending our staff there will be
\ngreater due to the tax," he added. (26\/arp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/batams-exit-tax-viewed-negatively-by-business-1447893297",
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"sponsor": "Okusi Associates",
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