Substitute for exit tax

Substitute for exit tax

From Kompas

I have often read reports about go-betweens in paying the exit tax -- the Rp 1 million tax for people going abroad. Those middlemen offer their services to get an exit tax certificate for a price lower than the official one. It happens not only at Sukarno-Hatta Airport but also at Batam Port.

Since the collection of the tax is open to manipulation, it is better to abolish it and substitute it with another tax. The exit tax being a state revenue, the substitute to be chosen must be duly considered.

A tax on the purchase of a new car could be introduced at a uniform rate or a maximum of 2 percent of the selling price with a minimum amount to be paid. The tax is a prerequisite for obtaining a license number and its payment is considered final.

The tax proposed as a substitute would have a better target compared to the exit tax because people leaving Indonesia for medical treatment, religious purposes, studies, sports, etc., would not have to pay it.

S.K. DARYANTO

Jakarta