Govt issues ruling on Batam tax exemption<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government has issued a regulation to extend the time
\nperiod for tax incentives on Batam island in Riau, which exempts
\ncompanies on the island from value-added tax (VAT) and luxury
\ntax.<\/p>\n
Batam's mayor Nyat Kadir said on Friday that government
\nregulation No.85\/2001, which was signed on Dec. 31, 2001, gave
\nBatam the incentive scheme until June 30 this year.<\/p>\n
\"With this, I hope investors will no longer have any doubts or
\nworries,\" the mayor said.<\/p>\n
The Ministry of Finance had earlier warned that it would
\nreimpose VAT and luxury taxes on the island once the government
\ndecree expired on Dec. 31, 2001.<\/p>\n
As a matter of fact, the government has planned to turn the
\nisland into a free trade zone, but the law on the scheme has not
\nyet been completed.<\/p>\n
The Ministry of Finance's plan, however, drew protests from
\nvarious parties, including the island's investors and the
\nMinister of Industry and Trade, who called on the finance
\nministry to extend the tax facilities for another six months.<\/p>\n
The Ministry of Industry and Trade expects the bill on Batam's
\nfree trade status to be completed and passed into law within six
\nmonths.<\/p>\n
The mayor said he was optimistic that the bill on Batam's free
\ntrade status would be passed into law on time.<\/p>\n
\"The bill is still being discussed. Hopefully, the wishes of
\ninvestors and the government can be realized soon,\" Nyat Kadir
\ntold The Jakarta Post.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-issues-ruling-on-batam-tax-exemption-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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