Tax oddities

Tax oddities

From Koran Tempo

The exit tax for overseas departures is a part of income taxes, but strangely, even children, earning no income are required to pay it. On the other hand, taxpayers are not only limited to certain provinces in Indonesia, but oddly, passport holders from some Sumatra provinces are not obliged to pay this incredulous exit tax.

The scarcity of job opportunities at home has forced millions of Indonesians to seek menial labor abroad. Successful ones remit foreign exchange back home, so these heroes actually deserve a tax relief.

Many of our migrant workers in Singapore can go home more than four times a year, but they still pay the tax with a few exceptions. Isn't it fairer and wiser to grant them all total exit-tax exemption?

Moreover, with our entry into AFTA and other such regional arrangements, it is more appropriate to allow our citizens greater freedom in their pursuit of overseas opportunities by relieving them of this exit tax, which no other country has hanging over their citizens and greater movement will eventually also lead to increased state revenue.

ACHMAD SOEKRY Singapore