Indonesia: Government advised to increase ceiling on import taxes

The government is advised to increase the ceiling for the import tax on goods purchased in other countries, currently US$250 for each individual and $1,000 for a family.

“It is time to revise the policy by considering the inflation rate, people’s income and people’s purchasing power,” said Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo over the weekend as reported by tempo.co.

He referred to Finance Minister Regulation No. 188/2010 on imported goods.

He called for an increase in the import tax ceiling to $2,000 for individuals and $10,000 for families.

Although the regulation has been in place since 2010, it has been enforced only recently, causing people some surprise to discover they have to pay various taxes at airports for goods they purchased abroad.

The issue went viral on social media when two travelers had to pay Rp 5.4 million ($408) to customs officers at Soekarno-Hatta International Airport for a bag they purchased in Singapore. They had to pay a 15 percent excise tax, 10 percent added value tax and 10 percent income tax.

The Finance Ministry’s customs and excise director general, Heru Pambudi, denied that his office had failed to disseminate information about the regulation.

“We appeared on radio and television. We distributed information through social media and Android apps,” Heru said. (bbn)   

Source: http://www.thejakartapost.com/news/2017/09/18/government-advised-to-increase-ceiling-on-import-taxes.html