Singapore imposes new tax policy for foreign tourists
Singapore imposes new tax policy for foreign tourists
JAKARTA (JP): Indonesian tourism executives are urging
Singapore to revise its newly-implemented three-percent general
sales tax, which they claim has burdened Indonesian tourists.
The president of PT Setia Tours and Travel, Nurdin Purnomo,
said here yesterday that the tax, imposed by the Singapore
Tourist Promotion Board (STPB) as of April 1, is discouraging
Indonesians from making shopping trips to Singapore.
STPB's service director, Evelyn Sen, said, however, after
attending a presentation on the "Great Singapore Sale" campaign,
that the tax will not affect tourists from Indonesia.
She said the tax will be refunded if visitors spend at least
S$500 (US$320) in one store.
Furthermore, retail prices in Singapore will not increase
after the imposition of the tax, she said.
Prices are in fact declining due to the appreciation of the
Singapore dollar against the Japanese yen, she added.
Another executive of the board, Hassan Kassim, noted that the
Singapore dollar is also strengthening against the U.S. dollar.
"The U.S. dollar is currently trading at around S$1.60, much
stronger than S$2.20 four years ago," he said.
Overpriced
Nurdin, however, said that most major shopping centers in
Singapore overpriced their goods.
"I often find that goods in Singapore are sold at prices 10 to
20 percent higher than similar goods in Jakarta," he observed.
He attributed the higher living costs, expensive leasing space
in shopping centers and high payments for employees for the
higher prices.
Kassim said the general sales tax is imposed on all customers,
including Singaporeans. But shops with annual sales of less than
$1 million are exempted from the tax.
"Tax refunds are available for foreigners who fill out certain
forms at the airport when departing," he said, adding that the
tax rate in his country is far lower than the value added tax of
12.5 percent in New Zealand and 17 percent in Britain.
Singapore has become the world's 11th largest earner of
foreign exchange from tourists and topped the list of tourist
arrivals among Association of Southeast Asian Nations (ASEAN)
member countries in 1993 with 6.4 million visitors who spent
US$8.5 billion last year.
Sen said that tourist arrivals are estimated to increase by
four to six percent this year.
The "Great Singapore Sale," under which department stores in
Singapore will offer discounts of up to 70 percent from July 17
through Aug. 17, is a first for the city-state. (icn)