Zero duty for 'tsunami' goods

Minister of Finance Yusuf Anwar has issued a decree that grants zero import duty for imported goods that are to be donated to the victims of the tsunami catastrophe in Aceh and North Sumatra, starting on Dec. 30.

However, the exemption is only valid for goods imported via bonded zones in the country, and by exporters or businesspeople who are already eligible for import duty cuts on materials that are later processed into export commodities.

No more details have been made available, but a ministry spokesman said the ministry would hold a media briefing on Monday to provide more details on the issue.

The move was the second policy introduced by the government within a week in an apparent move to encourage more donations to the victims.

Earlier, the government provided tax breaks for companies donating aid. To be eligible for the facility, firms must obtain a receipt from the people or institution that receives the donation and attach the receipt to their annual income tax bill.

Vice President Jusuf Kalla has said that the government will need at least Rp 1.35 trillion in emergency funds to meet the victims' basic needs.

Most survivors fled their homes with only the clothes on their backs. The emergency funds will be used to provide food, clothing, medical supplies and other basic necessities. -- JP