National athletes granted exemption from exit tax

JAKARTA (JP): National athletes will be exempt from the exit tax, starting early this year, each time they represent Indonesia in international championships abroad.

A letter from the Tax Directorate General, numbered S- 168/PJ.41/1999 and dated Dec. 31, 1999, said athletes competing abroad would not have to pay the exit tax as long as they brought a recommendation letter from the Office of State Minister of Youth Affairs and Sports.

The National Sports Council (KONI) secretary-general, Rudolf S. Warouw, said on Tuesday the exemption helped sports organizations, especially in sending their athletes to compete abroad.

KONI spokesman Ahmed Solihin said on Wednesday the letter was issued after State Minister of Youth Affairs and Sports Mahadi Sinambela met representatives of sports organizations soon after his installment last year.

"In the meeting, most organizations complained about the exit tax, which was a big financial burden to them," he said, adding that Sinambela sent a letter to President Abdurrahman Wahid on Nov. 19.

"We have to thank the minister for being proactive in responding our complaints."

Residents leaving the country must an pay exit tax of Rp 1 million (US$137). Up to now, athletes have been free from the tax when they represented Indonesia in multisports events, including the Southeast Asian (SEA) Games, the Asian Games and the Olympics.

Ahmed said he would meet with the minister's staff to discuss further the application to issue recommendations for organizations.

However, some organizations have yet to become aware of the new rule.

The Badminton Association of Indonesia (PBSI), which recently sent its 27 athletes to the Korean Open and the Chinese Taipei Open, paid Rp 27 million in exit taxes.

Ahmed said during Thursday's meeting he would ask the minister's office to request an exemption of the tax for coaches and team officials.

They will also discuss the free import tax for sports equipment as many sports organizations have complained about the high price of equipment due to the tax, which can be as much as 200 percent.

"That's the next step to be discussed. We cannot urge the government to agree on an exemption of the import tax soon because we have to consider the misuse of the facility by certain people," he said. Ahmed named shooting and motor racing as sports which might easily be used as a cover for smuggling activities. (yan)