Duty on ships waived

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)