ID :
38751
Sun, 01/04/2009 - 13:41
Auther :

ECONOMIST: GOVT SHOULD SCRAP OVERSEAS TRAVEL TAX IMMEDIATELY

Yogyakarta, Jan 3 (ANTARA) - A university economics lecturer said here on Saturday the government should not wait until 2011 to scrap overseas travel tax completely.

"The overseas travel tax policy is not common because it is not found in other countries. So , I think, the policy should be revoked immediately," Sri Adiningsih from state University of Gajahmada said.
The government said earlier that its policy to impose overseas travel tax on people who do not have a taxpayer's registration number (NPWP) would only be effective for two years, namely from January 1, 2009 to December 31, 2010.
After that, no overseas travel tax would be imposed on anyone including those who had no NPWP.
Adiningsih said the overseas travel tax would not benefit Indonesia and could even hurt the country in the midst of the current economic liberalization.
"The tax will only increase cost and hurt tourism development," she said.
She said the total scrapping of the overseas travel tax would only cause an insignifact reduction in tax revenue but be positive for other sectors such as tourism and economy.
As of January 1, 2009, people who have no NPWP and wish to go abroad have to pay Rp2.5 million in overseas travel tax each which was higher than Rp1 million set before.
Departure tax exemption would only be given to three groups namely those who receive direct free-tax facility, NPWP holders and holders of foreign departure tax exemption letters (SKBFLN).
People who are less than 21 years old, foreigners living in Indonesia for less than 183 days, officials and families of foreign diplomats and members of international organizations, hajj pilgrims, Indonesian migrant workers and individuals making official travels abroad are given a direct free-departure tax facility.
The SKBFLN group include foreign students in Indonesia, foreign researchers taking part in the technical cooperation program approved by the state secretariate, religious mission members, the disabled, sick people to seek medication abroad, art and cultural troupe members and athletes representing Indonesia.

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