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