The government will introduce tax incentives for international tourist visitors to Indonesia, effective April 1, 2010.
To be put into operation at a number of Indonesia's international airports including Bali, the incentives will offer cash refunds for tax expenditures by tourist against certain pre-set limits.
Quoted in BisnisBali, the Head of the Sub-Directorate for the Regulation of Taxes, Estu Yoga Saksama, said he hoped the new program would be in operation on April 1, 2009, and that it would help increase tourism flows to Indonesia.
Foreign passport holders purchasing items during their visit to Indonesia can obtain a tax-refund on PPN (V.A.T) providing the merchandise is exported out of Indonesia, the value of the purchase(s) exceed Rp, 500,000 (US$50) and the purchase was made within a period of one month of their departure date.
Rebates will be processed at special counters prepared at major international airports operated by the tax department.
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