Economy & Business

Indonesian Government To Revoke Departure Tax Policy
Thursday, 19 August, 2004 | 19:29 WIB

TEMPO Interactive, Jakarta:The Indonesian government is preparing a presidential decision to revoke the departure tax policy for Indonesians who wish to leave the country.

State Secretary Bambang Kesowo said that before the 2005 budget year began, Indonesian President Megawati Soekarnoputri would have signed this decision.

“This is just a matter of time. In the 2005 State Budget Draft, I don’t think the departure tax policy will be imposed anymore,” Kesowo told reporters after attending the Independence Day commemoration at the Jakarta Convention Center, Jakarta, on Wednesday (18/08).

He added that this new policy on the departure tax would be adjusted with the Tax Law later on.

Based on article 2 of the ASEAN Tourism Agreement (ATA), every member country is obliged to revoke any departure tax policy on its citizens who wish to go abroad by the end of 2005.

This will hopefully increase inter-country mobility in the ASEAN region.

Director general of tax Hadi Poernomo said he was yet to hear any suggestion to revoke the departure tax for citizens who wish to go abroad.

“I have never heard of such a suggestion,” Poernomo said in Jakarta on Wednesday (18/08).

According to Poernomo, the finance department has never suggested or discussed the revoking of the departure tax policy.

He added that the departure tax policy has been stipulated in article 25 sub section 8 of the Income Tax Law. (Sapto Pradityo/Bagja Hidayat/Maria Ulfah - Tempo News Room)