Mon, 30 Aug 2004

The absurdity of our 'exit tax'

The departure tax does not apply for non-residents of Indonesia. Indonesians with a foreign stay permit (e.g. students) did not have to pay the exit tax when it was first introduced, if they only took one trip home and when back abroad during any given 12-month period. There was no time limit to their length of stay in Indonesia during that one year.

Then this was changed without notice to the public. Now if an Indonesian, who lives, works or studies abroad, he/she is only allowed to stay a maximum of 181 days in his home country. If he/she stays longer, he/she is forced/punished to pay the "exit tax". However, Indonesians with foreign stay permits are allowed to come and go three times in a year without paying that "tax". Isn't this unfair?

The one that "overstays" the limit of 181 days in his/her own country because of serious reasons (serious illness, death of a relative, or a natural disaster like a flood) has to pay and the one that can afford two to three trips per year does not have to pay anything!

The official name for this tax is the PPh tax (income tax) and may be reclaimed through bureaucratic channels. Students or elderly people normally don't work and thus pay no income tax. How can they reclaim this expense, without even a tax number? Could someone please shed some light on this obscure situation?

Calling it a "departure tax" (you have to pay to be able to leave this country), is the right term and the camouflaged term "refundable PPh tax" is nonsense, because I, and perhaps many others, cannot get that money refunded. I am a senior citizen and my children live abroad. They pay for my tickets and the departure tax, affording me a break from the stresses of life here. This restrictive tax is purely a money-grabbing system and the students and senior citizens with no taxable income should be exempted from it.

I sincerely hope that this present talk about a total abolishment of this "exit permit" is not just another example of "kicking sand into the eyes" of concerned people, whilst the issue dies on the road and things go on as before. It really hurts the average citizen/family, who want to widen horizons by visiting different cultures, while businesspeople just put this expense on the company account and don't even feel it and on top can even claim and deduct it in their yearly tax report as taxes payed!

SUHARTO, Jakarta