Businessmen Call For a Tax Reduction on Liquor
TEMPO Interactive, Jakarta:Hotel and restaurant businessmen have called on the government to immediately reduce the luxury goods tax on liquor. “The current tax, which is 300 percent, is too high, so liquor is very costly,” said Indonesian Hotel and Restaurant executive-director, Carla Parengkuan, yesterday. She suggested the government reducing the tax by 50 percent.
According to Carla, the skyrocketing prices of liquor have made distributors reluctant to get supplies from importers. “This has caused market prices to go even higher,” she said, adding that the financial crisis has impacted negatively on the tourism industry. The costly liquor drove foreign tourists away from Indonesia.
As example, Carla said Russian tourists cannot be separated from vodka. Businesses, she said, are worried that the costly liquor will trigger more smuggling. Around 40 percent of the alcoholic beverages distributed today are suspected to be smuggled or fake products.
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According to Carla, the skyrocketing prices of liquor have made distributors reluctant to get supplies from importers. “This has caused market prices to go even higher,” she said, adding that the financial crisis has impacted negatively on the tourism industry. The costly liquor drove foreign tourists away from Indonesia.
As example, Carla said Russian tourists cannot be separated from vodka. Businesses, she said, are worried that the costly liquor will trigger more smuggling. Around 40 percent of the alcoholic beverages distributed today are suspected to be smuggled or fake products.
BUNGA M