Govt plans new tax incentives<\/p>\n
JAKARTA (JP): The government will issue a new package of
\nderegulation measures in the next few days to boost non-oil and
\ngas exports, Minister of Industry and Trade Tunky Ariwibowo said
\nyesterday.<\/p>\n
Tunky said the deregulation measures would include value-added
\ntax incentives for export companies.<\/p>\n
\"With the currency crisis, our officials have realized the
\nimportance of exporters in raising foreign exchange... They must
\ntherefore be helped and not be left working alone,\" Tunky said
\nafter meeting with President Soeharto at Merdeka Palace.<\/p>\n
Tunky said one of the major problems for Indonesian exports
\ncame from the government itself, which thought more about the
\nministry's interests rather than national interests.<\/p>\n
\"We have identified all export obstacles... but related state
\nagencies or ministries are often divided on how to solve the
\nproblem,\" Tunky noted.<\/p>\n
Exporters have complained about the slow refund of value-added
\ntax (VAT) for export firms despite the fact that the Directorate
\nGeneral of Tax has promised that refunds would be made available
\n10 days after exporters file tax refund forms.<\/p>\n
Exporters are exempted from duties and VAT on materials
\nimported for the production of export goods. They are obliged to
\npay the duties and VAT in advance and have the right to a refund
\nfrom the tax office and the customs and excise office.<\/p>\n
Bisnis Indonesia daily quoted government officials as saying
\non Monday that exporters would be exempted from the tax.<\/p>\n
\"There are indications that the minister of finance and his
\nofficials will agree to this incentive,\" Tunky said without
\nfurther elaboration of the deregulation measure.<\/p>\n
In a related development, the Indonesian Association of
\nExporters said its members preferred to wait for monetary
\nstability before making any major moves in their businesses.<\/p>\n
\"Only monetary stability would ensure us of our ability to
\nboost exports,\" Antara quoted the association's chairman Ibrahim
\nGani as saying on Monday. (prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-new-tax-incentives-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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