No Plans For Travel Tax Blitz, Govt Says
Dion Bisara | December 24, 2010
The levy on travelers without a tax identity card will be lifted on Jan. 1. Related articles
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413431In term of managing the country's budget, this move should be viewed in a positive manner. Instead of using the taxpayers money to increase the wages of the custom officer, this plan would give opportunities to these officers to supplement their low income.
Ha ha ha. An all too predictable turn of events given the axing of the fiscal "Oh no! Godda find a new way of making some cash off the passengers!"
If this leads to massive queues I will NOT be happy.
Has to be one of the great gafs of the year by Yudi Pramadi of the finance ministry .As usual a case of engaging the mouth without thinking about how they would implement this sort of tax without causing mayhem at the aiports. Damage has already been done to tourism judging by the letters on various blogs.
“couldn’t you afford to shop in this country?” We could but sometimes you can't always get it cheaper or so easily here. Just look at the DUTY rates on a lot of goods and you can see that you can easily save around 15-20% on a lot of items. I recently got stung on electronic components during import. Normaly these are 0% duty but because the supplier sent me their latest free catalogue in the same box, customs thought it a good idea to charge me on the whole shipment at 15% because they said it contained a catalogue. Even arguing the fact that the catalogue was free and I should only be charged on the dutyable goods was a waste of time. In total with handling fees, I got stung around 35% of the goods cost. Better next time I go overseas and hand carry them back.
I do hope that they do nothing more to inconvenience travellers. I was at Bali airport yesterday to meet some people from abroad. From the time their plane landed, to walking through and out of 'arrivals', it took just a little less than two hours. Over an hour was taken up with our stupid immigration and visa on arrival procedures. Why do we expect people to suffer for the privilege of coming here? Why do we have so many stupid people working in positions of authority? Frankly it paints an appalling picture of our country to visitors. Our airports procedures are a mess.
As a side issue, it would also be nice not to have to put up with the obligatory smell of urine in the airport toilets. Again it is embarrassing for most of us who live like humans and not animals, but obviously not for the airport managers.
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The tax office on Thursday sought to allay fears of a crackdown on air and sea travelers following rumors that baggage checks would be dramatically stepped up to enforce a new regulation limiting tax-free purchases overseas.
“Customs at the airports or seaports will proceed as usual. It’s impossible to go checking baggage one by one as it would jam the ports,” said Evi Suhartantyo, a spokesman for the Custom and Excise Directorate General.
Rumor mills in the capital have been busy churning out chatter that, under a new law passed in October, purchases in excess of $250 per person made abroad would be taxed on arrival and that customs officials had begun to enforce it, imposing strict baggage checks on returning citizens.
Under the alleged new rule, citizens and permanent residents returning from overseas must pay taxes on purchases if they spend more than $250 a person or $1,000 a family.
“Those are old rules that have been in place for more than 20 years now,” Evi said.
He said the old ruling was incorporated into a new regulation issued late in October by the Finance Ministry. The new regulation, which will be enforced beginning on Jan. 1, primarily takes the form of a simpler Custom Declaration form.
“We have received complaints that our CD is complicated. So we cut the size, reduced the questions to just 11 from 15 and provided separate forms for Bahasa Indonesia and English,” he said.
The new regulation also requires travelers to declare cash, checks or other forms of payment with a value exceeding Rp 100 million ($11,100).
Evi said there have been no instructions for custom officials to check all baggage in detail. “Customs will only look for suspicious baggage. We can see that through X-rays,” he said.
“Let’s say that a passenger brings a lot of shoes in different sizes. They must want to resell them for a profit.”
Import taxes would be levied on goods found in excess of the ceiling value, he said.
“If you can afford to shop abroad,” he said, “couldn’t you afford to shop in this country?”
With the country recording strong economic growth, more Indonesians are traveling overseas. Those numbers are expected to increase after Jan. 1, once the government waives the punitive Rp 2.5 million exit tax on citizens and residents without valid tax identification cards.
Rudiana, deputy chairman of the Association of Indonesian Airline Ticket Agents (Astindo), said a strict baggage search appeared unlikely.
“Our airports are hardly able to contain passengers during peak season, so I cannot imagine if this regulation is going to be implemented starting next year,” he said.
Such a policy would harm the country’s image, he said, noting that while other countries were moving forward by decreasing trade and duty barriers, Indonesia was moving backwards. He felt X-ray scans were enough.
Herna P. Danuningrat, chairman of the Association of Indonesia Tour and Travel Agencies (Asita) for Jakarta echoed Rudiana, saying, “If Indonesia wants to implement this now, it’s going to be a step back.”
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