Habibie to help shipowners<\/p>\n
JAKARTA (JP): President B.J. Habibie pledged on Thursday to
\nreview the IMF-prescribed value added tax on importing ships on
\nthe grounds that the vessels were of strategic importance.<\/p>\n
\"It's possible that the value added tax policy will be
\nremoved,\" he told members of the Indonesian National Shipping
\nAssociation (INSA) at their annual meeting.<\/p>\n
He promised that the government would issue a new ruling on
\nthe shipping sector in one month to provide facilities for the
\nshipping industry to import vessels and components.<\/p>\n
Under an agreement with the IMF in January, the government
\nremoved value added tax exemptions, including those on the
\nimporting, chartering and maintenance of ships.<\/p>\n
INSA secretary-general Barens TH Saragih said that maintaining
\nthe value added tax would precipitate the collapse of the
\nnational shipping industry, and cause many companies to register
\ntheir ships in countries with tax free policies like Singapore,
\nHonduras or Panama.<\/p>\n
The government exempted the shipping sector from paying value
\nadded tax in 1996, but reinstated it early this year as
\nprescribed by the IMF which is organizing a multibillion dollar
\nbailout economic package for the country in return for economic
\nreforms. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/habibie-to-help-shipowners-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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