Govt. to introduce tax refunds for foreign tourists
The government plans to introduce a "tax refund" scheme for foreign tourists shopping in the country as early as next year under an amendment to an existing law on value-added tax and luxury tax, legislators at the House of Representatives said, The Jakarta Post reported.
Indonesia may start introducing the tax refund scheme as soon as 2010 as the bill on value-added tax and luxury tax is expected to be endorsed this year.
"We have approved the tax refund (scheme). It will be applied to foreign tourists coming via air transportation, not sea or land," Vera Febyanthy, head of the House's working committee on the amendment, said Tuesday.
She added that the details of the tax refund mechanism would be elaborated at a later date through government regulations.
The government and House have agreed to approve the tax refund scheme in a bid to attract more tourists to Indonesia, which would eventually help increase the country's foreign exchange income, Febyanthy said.
Indonesia may start introducing the tax refund scheme as soon as 2010 as the bill on value-added tax and luxury tax is expected to be endorsed this year.
"We have approved the tax refund (scheme). It will be applied to foreign tourists coming via air transportation, not sea or land," Vera Febyanthy, head of the House's working committee on the amendment, said Tuesday.
She added that the details of the tax refund mechanism would be elaborated at a later date through government regulations.
The government and House have agreed to approve the tax refund scheme in a bid to attract more tourists to Indonesia, which would eventually help increase the country's foreign exchange income, Febyanthy said.