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