Goods for Batam tax-free

Goods for Batam tax-free

JAKARTA (JP): Goods sent to Batam Island in Riau from any
other parts of the country are exempted from value added tax
(VAT) and luxury sales tax, Director General of Taxes Fuad
Bawazier said yesterday.

He told reporters that based on Decree No. 548/KMK.04/1994 of
the Minister of Finance dated Nov. 7, all goods delivered from
Indonesian customs territories to bonded areas, including Batam,
are free from VAT and luxury sales tax.

Fuad acknowledged that businessmen, as well as Riau Governor
Soeripto and Central Kalimantan Governor Warsito Rasman, had
complained that the previous imposition of VAT and luxury sales
tax on goods delivered to Batam had forced suppliers to send
their products to Singapore companies, which then passed them on
to the bonded island.

"The new decision on tax exemption is expected to help
invigorate supplies of goods to Batam from neighboring areas
within the country," he said. (riz)