Tax-Free Zone Regulation to be Issued
TEMPO Interactive, Jakarta:The government will soon issue a regulation annulling the amendment of Government Regulation no. 63/2003 on Value Added Tax Application and Luxury Goods Sales Tax in free trade zones of Batam, Bintan, and Karimun.
The government regulation draft is still being studied by the Justice and Human Rights Department. "Regulation no. 63/2003 restricts some commodities from entering the free trade zone," said Riau Archipelago governor Ismeth Abdullah following a meeting with vice president Jusuf Kalla at the vice presidential office yesterday.
The free trade zone regulation was previously ratified by the government and the House of Representatives (DPR). However, its implementation was impeded by this government regulation. If the new government regulation is issued, Ismeth said, Government Regulation no. 63/2003 will automatically be annulled. "We will be waiting for one to two weeks," he said.
While awaiting the new regulation, Ismeth said, the Finance Minister has instructed the Tax and Excises director-general to facilitate the entry of goods into the free trade zones. The regulation, he said, will exempt commodities entering the free trade zones from income tax or value-added tax.
The tax exemption applies to Batam (Batu Ampar Port, Sekupang, Kabil, and Hang Nadim Airport), Bintan (Kijang and Lobam Ports) and Karimun (Balai Karimun Port and Parit Rempak). According to Ismeth, the tax exemption will not lessen the functions of Tax and Excises, adding that checking of goods will still be carried out. Both exporters and importers must still report the commodities that will enter the free trade zones.
Investment Coordination Agency chairman, Muhammad Lutfi, confirmed that the government regulation is ready to be issued. "In no more than two weeks," he said yesterday, "if there are no arguments between parties."
KURNIASIH BUDI
The government regulation draft is still being studied by the Justice and Human Rights Department. "Regulation no. 63/2003 restricts some commodities from entering the free trade zone," said Riau Archipelago governor Ismeth Abdullah following a meeting with vice president Jusuf Kalla at the vice presidential office yesterday.
The free trade zone regulation was previously ratified by the government and the House of Representatives (DPR). However, its implementation was impeded by this government regulation. If the new government regulation is issued, Ismeth said, Government Regulation no. 63/2003 will automatically be annulled. "We will be waiting for one to two weeks," he said.
While awaiting the new regulation, Ismeth said, the Finance Minister has instructed the Tax and Excises director-general to facilitate the entry of goods into the free trade zones. The regulation, he said, will exempt commodities entering the free trade zones from income tax or value-added tax.
The tax exemption applies to Batam (Batu Ampar Port, Sekupang, Kabil, and Hang Nadim Airport), Bintan (Kijang and Lobam Ports) and Karimun (Balai Karimun Port and Parit Rempak). According to Ismeth, the tax exemption will not lessen the functions of Tax and Excises, adding that checking of goods will still be carried out. Both exporters and importers must still report the commodities that will enter the free trade zones.
Investment Coordination Agency chairman, Muhammad Lutfi, confirmed that the government regulation is ready to be issued. "In no more than two weeks," he said yesterday, "if there are no arguments between parties."
KURNIASIH BUDI