SBY issues warning to tax officials

SBY issues warning to tax officials

JAKARTA: President Susilo Bambang Yudhoyono told tax officials
on Saturday to stop abusing the departure tax policy because it
cost the state money.

After an impromptu visit to Soekarno-Hatta International
Airport in Tangerang, the President said he knew some people
colluded with tax officials to pay a lower departure tax when
traveling overseas.

"I hope this will not happen again in the future," he said
after visiting the departure tax section at the airport.

Indonesians and foreigners with Indonesian work permits are
required to pay a Rp 1 million (about US$106) departure tax at
the airport before traveling overseas. The tax is, however,
deductible.

There have been reports that the policy has been abused by tax
officials. Some people reportedly collude with tax officials or
middlemen to pay a lower departure tax, though they do not
receive a tax receipt.

According to Susilo, some 7,000 Indonesians depart for foreign
destinations every day from Soekarno-Hatta airport, which should
add Rp 7 billion to the state coffers daily.

"We have several international airports, so we can count the
total (income from the departure tax). The departure tax
management must be rearranged," said the President, who has
repeatedly said fighting corruption is the top priority of his
government. -- JP