Tax-free luxury cars

Tax-free luxury cars

In the past week the mass media has been filled with reports about the duty-free and tax-free import of a great number of luxury cars. The official explanation is that the import duty and special sales taxes were waived for those luxury cars and motorbikes because they were intended for exclusive purposes, such as use by the President or state guests, to serve as samples for the manufacture or import by the Indonesian Motor (Sport) Association.

However, it is an open secret that those luxury vehicles are being used for other purposes as well, especially for use by the well-to-do or certain government officials. And many of them are being advertised in newspapers for sale. This is ironic since ordinary people have to pay a relatively large sum of money in taxes just to buy a modest car or motorbike. On the other hand, some government officials are keeping one or two luxury cars -- something they cannot logically afford in an entire lifetime considering their salaries. Still, such is the reality.

The government has promised to go after the taxes owed. Unless they are paid off, the cars would have to be reexported. Naturally we welcome this objective since it would demonstrate to the public that there are no exceptions or special privileges where taxes are concerned.

-- Bisnis Indonesia, Jakarta