Tax breaks fro Batam extended<\/p>\n
The government has decided to extend value-added-tax (VAT) and
\nluxury tax exemptions on the island of Batam in Riau province
\nover the next six months.<\/p>\n
Minister of Finance Boediono said the move was meant to give
\nthe government time to draft a bill that will give the island a
\nfree trade zone status.<\/p>\n
\"The imposition of the taxes will be delayed for six months so
\nthat there is enough time to prepare the bill,\" the minister was
\nquoted by news portal Detik.com as saying.<\/p>\n
Companies on the island have been exempted from VAT and luxury
\ntaxes for many years given its status as an industrial-bonded
\nzone since 1978.<\/p>\n
But, the Ministry of Finance recently planned to revoke the
\ntax facilities at the start of next year in a bid to collect more
\ntax revenue to finance the state budget deficit.<\/p>\n
The plan, however, drew protests from various parties,
\nincluding investors in Batam and local people, who gained backing
\nfrom the Ministry of Industry and Trade.<\/p>\n
Minister of Industry and Trade Rini M. Soewandi has asked the
\nfinance minister to extend the tax incentive scheme for six
\nmonths to prevent investors from abandoning the island.<\/p>\n
Regarding the bill on Batam's free trade status, Budiono said
\nthe bill was being drafted.<\/p>\n
\"We want to make a really good bill,\" Budiono added. --JP<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/tax-breaks-fro-batam-extended-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }