Duty on ships waived

JAKARTA (JP): The government has further reduced the tax burdens on shipping companies by waiving the transfer-of- ownership duty on ships used for public transportation of passengers or cargo.

The tax incentive was granted by Finance Minister's Decree No.432, dated June 19, which stipulates that the transfer-of- ownership duty on ships which are operated for public services is borne by the government.

The government earlier removed the 10 percent value added tax on the delivery of sea, river and lake vessels operated for public services, and reduced the income tax on shipping companies from a flat rate of 1.8 percent to 1.2 percent. (vin)