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Bali News

Fiscal Tax to End?

The Jakarta Post Reports That Rp. 1 Million Fiscal tax to be Abolished in 2010.


Bali News: Fiscal Tax to End?
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(9/22/2007)

The Jakarta Post reports that the Indonesian government plans to abolish the unpopular fiscal tax in 2010. According to the paper quoting Metro TV, Indonesia's Minister of Finance, Sri Mulyani, has confirmed that a formal draft abolishing the tax is now before the government.

A Word of Caution

Over recent years there have appeared numerous reports in the local press stating the fiskal tax was to be abolished only to eventually be repudiated by official source.

Indonesian's and residents of the Republic must currently pay a Rp. 1 million (approximately US$106) tax each time they depart the country via an international gateway.

Those departing Indonesia via a seaport pay a reduced fiscal rate of Rp. 500,000 (approximately US$53).

The fee, which can eventually be offset against personal or corporate income tax liabilities, is widely unpopular among both Indonesians and Indonesia's ASEAN neighbors who claim the tax inhibits regional tourism development and cooperation.


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