National athletes granted exemption from exit tax

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)