Sandalwood exports taxed

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)