Special luxury imported cars sold illegaly, official says

JAKARTA (JP): Many luxury cars imported for special purposes have been illegally sold, a senior government official said here on Wednesday,

Director General of the Customs and Excise Permana Agung said sales of the vehicles had caused a great financial loss to the state.

"Only 487 of the luxury cars imported under the import duty exemption facility during the last five years have been re- registered or sold to other parties according to proper procedures," he said.

Diplomatic missions, international organizations, government- sponsored international event coordinating bodies, presidential and state guest services, racing car organizations and vehicle industry prototype bodies are exempt from import duties of up to 200 percent.

Cars imported under this facility must, however, be re- exported following the license expiry date. Indonesian citizens may buy the used vehicles for private use but must pay import duties and other tax obligations such as a 10 percent value added tax and a 35 percent sales tax on luxury goods.

Permana said many importers illegally sold the cars without following proper procedures to avoid the high tax payment.

He, however, refused to reveal the number of cars imported under the tax facility or the number due to be re-exported.

He suggested that misuse of the duty exemption facility occurred in the car racing and vehicle industry prototype business.

At least 43 race cars, 166 sedans and 54 motorcycles imported by the Indonesian Automobile Association during the last five years for race tournament purposes were still used without being converted to legal ownership in line with government procedures.

He said his office, the National Police, Ministry of Foreign Affairs and Cabinet Secretariat signed a Memorandum of Understanding in February to handle the problem more effectively. (cst)