Tax free for telecom parts

Tax free for telecom parts

JAKARTA (JP): Firms operating in the telecommunications sector
will continue to be exempt from paying import duties on raw
materials, components and spare parts, the Ministry of Finance
announced on Friday.

Ministry spokesman Hadiyanto said in a statement that the
exemption had been extended to help support development of the
country's telecommunication sector. Almost all raw materials and
component parts used by firms operating in the sector have to be
imported.

Hadiyanto said that the exemption would be effective for the
period of one year beginning on Sept. 2, 1998.

Companies must apply to the director general of customs and
excise if they want to be granted the exemption.

The exemption applies to components required to build digital
telephone exchanges, automotive phone networks and
telecommunications terminals.

In all, 438 components used in digital telephone exchanges are
covered by the exemption along with 94 components for
telecommunications terminals and 471 components required in
automotive phone networks. (gis)