Sandalwood exports taxed

JAKARTA (JP): The government has imposed an export tax of US$2,400 on each ton of sandalwood chips and powder with an oil content of over 0.4 percent in a bid to boost the country's handicraft industry.

Agus Haryanto, a spokesman for the Ministry of Finance, said Saturday that the measure is stipulated by the Finance Minister's Decree No: 336/KMK.017 which became effective on July 9.

The ruling also imposes an export tax of $4,800 per ton on sandalwood roots.

Agus said that the export tax duties are imposed as part of the government's effort to promote exports of handicraft products or souvenirs made from sandalwood.

"It is an important measure for encouraging the industry at home," he said, adding that exports of processed sandalwood in the form of handicraft products or souvenirs weighing less than two kilograms were, therefore, freed from any export tax.

The government previously imposed no export taxes on sandalwood chips and powder as well as sandalwood roots. (hen)